Bechtel to begin work on $13B Texas LNG project

Dive Brief:

  • A major liquified natural gas project in Texas is moving ahead after years of planning.
  • Last week, public utility company Sempra issued Bechtel a final notice to proceed on Phase 1 of the company’s Port Arthur LNG plant, according to a press release
  • Total capital expenditures for Phase 1 are estimated at $13 billion, according to the release, and the contract was valued at $10.5 billion in October 2022, according to Port Arthur News.

Dive Insight:

Phase 1 is designed to include two natural gas liquefaction trains, two liquefied natural gas storage tanks and associated facilities at the site on Sabine Lake near Houston, according to the release. Trains 1 and 2 are expected to be commercially operational in 2027 and 2028, respectively, according to the release.

The project’s Phase 1 is expected to create an estimated 5,000 highly skilled jobs during construction, according to Sempra. It will join a portfolio of large projects that Bechtel has commenced recently, including the high-profile $20 billion Intel semiconductor fab.

Bechtel’s role on the project has been in the works since at least 2018, when the Reston, Virginia-based firm was selected as the engineering, procurement, construction and commissioning contractor for the project, according to the company

Texas Gov. Greg Abbott said that the project will cement the Lone Star State as the “energy capital of the world.”

However, liquified natural gas is not the only type of energy production taking place in the state — a wide variety of green energy projects are advancing in Texas, including a $6 billion, 540-acre green hydrogen fuel plant in the Bay City area, which is also being built by Bechtel.

The Port Arthur plant is not without controversy. Texas residents have protested against the project, citing high levels of pollution in the town of Port Arthur.

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