Summary
Cheniere Energy, Inc.'s subsidiary, Corpus Christi Liquefaction, LLC (CCL), has entered into an Amended and Restated Fixed Price Separated Turnkey Agreement with Bechtel Oil, Gas and Chemicals, Inc. for the Engineering, Procurement, and Construction (EPC) of the Corpus Christi Stage 2 Liquefaction Facility. This agreement supersedes a prior contract and outlines the terms for building a liquefaction train with a capacity of approximately 4.5 million tonnes per annum (mtpa), an LNG storage tank, and associated infrastructure. This development is significant as it represents a substantial commitment to expanding Cheniere's export capacity. The contract price is approximately $2.36 billion, with provisions for adjustments due to change orders initiated by either party under specific circumstances. The agreement also includes detailed terms regarding performance guarantees, liquidated damages for delays or underperformance, schedule bonuses, and termination clauses for both CCL and Bechtel, providing a framework for project execution and risk mitigation.
Key Highlights
- 1Cheniere's subsidiary, CCL, has executed a new EPC contract with Bechtel for the Corpus Christi Stage 2 Liquefaction Facility.
- 2The contract covers the construction of one liquefaction train with an expected capacity of 4.5 mtpa.
- 3The total contract price is approximately $2.36 billion, subject to change orders.
- 4The agreement details Bechtel's obligations regarding performance guarantees, with provisions for liquidated damages if minimum acceptance criteria are not met.
- 5Various termination rights are defined for both Cheniere and Bechtel, including for default, convenience, or extended force majeure.
- 6Bechtel's liability is capped, with specific exceptions for certain obligations like title warranty and completion of essential work.