Cheniere Signs EPC Contract with Bechtel for the Corpus Christi Stage III Project and Issues Limited Notice to Proceed to Commence Construction

Rhea-AI Summary

Cheniere Energy announced its subsidiary, Cheniere Corpus Christi Liquefaction Stage III, LLC, has signed a lump sum EPC contract with Bechtel for the Corpus Christi Stage III Project. This project aims to establish up to seven liquefaction trains, each capable of producing 1.49 million tonnes per annum (mtpa), totaling over 10 mtpa. The project is backed by long-term agreements with reliable counterparties. Cheniere expects a Final Investment Decision (FID) this summer, with operations anticipated to start in 2025, highlighting the importance of natural gas in the global energy landscape.

Positive

• EPC contract signed with Bechtel for the Corpus Christi Stage III Project.
• Project has a total production capacity of over 10 mtpa, enhancing LNG export capabilities.
• Commercially supported by long-term agreements with creditworthy counterparties.
• Anticipated Final Investment Decision (FID) to occur this summer.

Negative

• None.

HOUSTON--(BUSINESS WIRE)-- Cheniere Energy, Inc. (“Cheniere” or the “Company”) (NYSE American: LNG) announced today that its subsidiary, Cheniere Corpus Christi Liquefaction Stage III, LLC (“CCL Stage III”), has entered into a lump sum, turnkey, engineering, procurement and construction (“EPC”) contract with Bechtel for the Corpus Christi Stage III Project. In addition, CCL Stage III has released Bechtel to commence early engineering, procurement and other site work at the Corpus Christi Stage III Project under a limited notice to proceed (“LNTP”).

The Corpus Christi Stage III Project is a fully permitted project consisting of up to seven midscale trains, each with an expected liquefaction capacity of approximately 1.49 million tonnes per annum (“mtpa”) with a total production capacity of more than 10 mtpa. The project is commercially underpinned by long-term agreements with creditworthy counterparties.

“We are pleased to once again partner with Bechtel on the Corpus Christi Stage III Project, and we look forward to building upon the unmatched track record for execution excellence the Cheniere and Bechtel relationship has established while successfully building our LNG platform. The signing of this EPC contract and the issuance of LNTP mark important steps towards a Final Investment Decision on the project, which we expect to occur this summer. We are excited to have the project underway and are focused on the remaining steps required in order to reach FID,” said Jack Fusco, Cheniere’s President and Chief Executive Officer. “The Corpus Christi Stage III Project commences as global LNG market fundamentals highlight the criticality of natural gas in the global energy mix. We look forward to providing our customers with reliable and flexible LNG from the Corpus Christi Stage III Project starting in 2025.”

“Cheniere’s award of the EPC contract for the third phase of the LNG development at the Corpus Christi complex is another important step in our long-term partnership to deliver affordable cleaner energy to the world,” said Brendan Bechtel, Chairman and CEO of Bechtel. “The industry leading results we have helped Cheniere achieve over the last nine years are a testament to the power of a ‘One Team’ approach built upon shared goals and trust.”

About Cheniere
Cheniere Energy, Inc. is the leading producer and exporter of liquefied natural gas (LNG) in the United States, reliably providing a clean, secure, and affordable solution to the growing global need for natural gas. Cheniere is a full-service LNG provider, with capabilities that include gas procurement and transportation, liquefaction, vessel chartering, and LNG delivery. Cheniere has one of the largest liquefaction platforms in the world, consisting of the Sabine Pass and Corpus Christi liquefaction facilities on the U.S. Gulf Coast, with total production capacity of approximately 45 million tonnes per annum of LNG in operation. Cheniere is also pursuing liquefaction expansion opportunities and other projects along the LNG value chain. Cheniere is headquartered in Houston, Texas, and has additional offices in London, Singapore, Beijing, Tokyo, and Washington, D.C.

For additional information, please refer to the Cheniere website at www.cheniere.com and Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission.

About Bechtel
Bechtel is a trusted engineering, construction and project management partner to industry and government. Differentiated by the quality of our people and our relentless drive to deliver the most successful outcomes, we align our capabilities to our customers’ objectives to create a lasting positive impact. Since 1898, we have helped customers complete more than 25,000 projects in 160 countries on all seven continents that have created jobs, grown economies, improved the resiliency of the world's infrastructure, increased access to energy, resources, and vital services, and made the world a safer, cleaner place.

Bechtel serves the Energy; Infrastructure; Nuclear, Security & Environmental; and Mining & Metals markets. Our services span from initial planning and investment, through start-up and operations. www.bechtel.com

Forward-Looking Statements
This press release contains certain statements that may include “forward-looking statements” within the meanings of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere’s financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding regulatory authorization and approval expectations, (iii) statements expressing beliefs and expectations regarding the development of Cheniere’s LNG terminal and pipeline businesses, including liquefaction facilities, (iv) statements regarding the business operations and prospects of third-parties, (v) statements regarding potential financing arrangements, (vi) statements regarding future discussions and entry into contracts, (vii) statements relating to Cheniere’s capital deployment, including intent, ability, extent, and timing of capital expenditures, debt repayment, dividends, and share repurchases, and (viii) statements regarding the COVID-19 pandemic and its impact on our business and operating results. Although Cheniere believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Cheniere’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in Cheniere’s periodic reports that are filed with and available from the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Cheniere does not assume a duty to update these forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220304005546/en/

Cheniere Energy, Inc.

Investors

Randy Bhatia, 713-375-5479

Frances Smith, 713-375-5753

Media Relations

Eben Burnham-Snyder, 713-375-5764

Source: Cheniere Energy, Inc.

FAQ

What is the significance of Cheniere's contract with Bechtel for LNG?

Cheniere's contract with Bechtel is crucial for advancing the Corpus Christi Stage III Project, which will increase LNG production capacity.

When is the Final Investment Decision (FID) expected for the Corpus Christi Stage III Project?

The Final Investment Decision (FID) for the project is expected to occur this summer.

What is the planned capacity for the Corpus Christi Stage III Project?

The project is designed to achieve a total liquefaction capacity of over 10 million tonnes per annum (mtpa).

How does the Corpus Christi Stage III Project relate to global LNG demand?

The project is positioned to meet the increasing global demand for natural gas, thereby enhancing Cheniere's role in the energy market.

What are the expected operational timelines for the Corpus Christi Stage III Project?

Operations for the Corpus Christi Stage III Project are anticipated to begin in 2025.