Cheniere Energy Partners, L.P. CQP has announced that its subsidiary, Sabine Pass Liquefaction Stage V (SPLV), signed a lump-sum turnkey engineering, procurement and construction (EPC) contract with Bechtel Energy Inc. for Phase 1 of the Sabine Pass (SPL) Expansion Project. SPLV also issued a limited notice to proceed, allowing Bechtel to begin early engineering and procurement activities.
The SPL Expansion Project is designed to include up to three large-scale liquefaction trains with an expected peak production capacity of approximately 20 million tons per annum (MTPA), including debottlenecking opportunities and related infrastructure. Phase 1 of the project includes Train 7, a boil-off gas re-liquefaction unit and supporting infrastructure connected to the existing Sabine Pass LNG terminal. Including debottlenecking benefits, the production capacity of Phase 1 is expected to be more than 6 MTPA of liquified natural gas (LNG).
The project is backed by long-term agreements with creditworthy counterparties, supporting commercial viability. A positive final investment decision (FID) remains dependent on securing required regulatory approvals and acceptable financing arrangements. Applications with the Federal Energy Regulatory Commission and the Department of Energy are pending. CQP aims to reach Phase 1 FID by the beginning of 2027.
Cheniere currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector having a presence in the upstream space are Chevron Corporation CVX, YPF Sociedad Anónima YPF and Cenovus Energy Inc. CVE. CVX, YPF and CVE sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The U.S. natural gas and LNG sectors are poised for long-term growth, with daily U.S. LNG exports projected to rise from 15.1 Bcf in 2025 to 18.2 Bcf by 2027, according to data from the U.S. Energy Information Administration (EIA) in its short-term energy outlook. This expansion in daily U.S. LNG exports in the coming days is going to benefit CQP, which is engaged in production and export of LNG, as well as natural gas producers like CVX, YPF and CVE.
Capitalizing on rising global LNG demand, the SPL Expansion Project is expected to position CQP to generate incremental cash flows, thereby strengthening its business model and enhancing investor appeal.
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Chevron Corporation (CVX): Free Stock Analysis Report
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