Sempra Infrastructure, a subsidiary of California-based utility Sempra, has signed an engineering, procurement and construction contract with US firm Bechtel Energy for Phase II of the Port Arthur LNG export project in Texas.

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Chiyoda Corp, the Japanese LNG engineering company working on the Golden Pass project in Texas that has been hit by the bankruptcy of the US Zachry construction group, is seeking an immediate return to building work along with the owners to get Train 1 back on track.

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Bechtel Energy, the leading US and global liquefied natural gas engineering and construction company, said it was looking to hire for more than 500 roles for the Port Arthur LNG export project in Texas as building gets underway.

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Texas LNG, the US export project being constructed in the Port of Brownsville in Texas as a subsidiary of New York-based Glenfarne Energy Transition, has signed a supply accord with the Singapore-based trading unit of global commodities firm Gunvor.

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Texas LNG, the liquefied natural gas export project to be constructed by the New York-based Glenfarne Group, has selected Gulf LNG Tugs of Texas to assist LNG carriers arriving and departing from the fully permitted facility at the Port of Brownsville.

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The US Army Corps of Engineers has awarded the fourth and final contract of the Port of Corpus Christi Ship Channel Improvement Project (CIP) to Callan Marine,  signaling the conclusion of a national infrastructure initiative that will render the ship channel the most improved waterway along the US Gulf Coast from Texas to Florida.

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Baker Hughes, the US energy technology company and compressor provide for liquefaction plants, was awarded an order by Bechtel Energy to supply equipment for the Rio Grande export project in Texas being developed by NextDecade Corp. and partners.

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Baker Hughes, the US liquefied natural gas equipment-maker and energy services company, has been awarded an order by Bechtel Energy to supply two main refrigerant compressors for the Port Arthur LNG export project in Texas.

The Port Arthur venture is being developed in the first phase by the Sempra Infrastructure unit of California-based Sempra in Jefferson County, Texas, after a positive final investment decision made on March 20.

Baker Hughes said it would supply four Frame 7 turbines paired with eight centrifugal compressors across two LNG Trains under the deal with engineering, procurement and construction contract-holder Bechtel.

The two large-capacity Trains at the Texas project will each produce over 6 million tonnes per annum for a nameplate capacity of around 13 MTPA in the first phase.

Baker Hughes added that it would also supply two electric motor-driven compressors for the plant’s boosting services.

Critical equipment

“We are delighted to be working with Bechtel and Sempra Infrastructure to supply critical equipment for this innovative LNG project,” said Baker Hughes Chairman and Chief Executive Lorenzo Simonelli.

“Baker Hughes has been committed to LNG for over 30 years, and the announcement builds on our track record of delivering high-availability and reliable LNG technology, with low total cost of operations, further enabling increased exports of LNG from the US Gulf Coast to meet global energy needs,” Simonelli added.

Baker Hughes noted that the Frame 7 turbine was well-proven for its energy efficiency, availability, reliability and maintainability.

“Packaging of the turbine-compressor Train, a unique Baker Hughes offering, as well as manufacturing of the compressors and testing of the Trains, will take place at Baker Hughes’ facilities in Italy,” explained the company.

Commercial start

“The expected commercial operation dates for Port Arthur LNG Phase 1 Train 1 and Train 2 are 2027 and 2028 respectively,” added Baker Hughes.

Total capital expenditure for the Port Arthur Phase 1 project is estimated at $13 billion.

Sempra explained that it had secured a joint venture with ConocoPhillips whereby an affiliate of the US major has acquired a 30 percent non-controlling interest in the project and is purchasing 5 MTPA of LNG offtake under a 20-year sale and purchase agreement.

Additionally, ConocoPhillips will be managing the Port Arthur project's overall natural gas supply requirements.

ConocoPhillips will also have certain rights to participate in future expansion projects in both equity and offtake.

Sempra has also reserved an indirect stake in Port Arthur LNG for US asset management firm Kohlberg Kravis Roberts , which is already a stakeholder in Sempra Infrastructure.

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NextDecade Corp. the developer of the Rio Grande LNG export project on the Brownsville Ship Channel in Texas, has signed a 15-year sale and purchase agreement (SPA) with Japanese trading house Itochu Corp., its first deal with Japan and its seventh SPA overall.

Under the latest SPA, Itochu will purchase 1.0 million tonnes per annum of LNG indexed to Henry Hub on a free-on-board basis.

Itochu was also one of the three Japanese companies that recently signed deals with Oman LNG on the Arabian Peninsula for 800,000 tonnes per annum of deliveries each.

“We are honored to have Itochu as our first Japanese customer,” said Matt Schatzman, NextDecade's Chairman and Chief Executive.

“We look forward to providing Itochu and their customers with LNG, and we are actively working to reduce the carbon footprint of the Rio Grande LNG facility through our proposed carbon capture and storage project,” added the CEO of the Nasdaq-listed company.

NextDecade had previously signed an increase for the SPA with ENN LNG of Singapore, a trading unit of the Chinese ENN Natural Gas Group.

Supplying China

Under that 10-year SPA, ENN will now purchase 2.0 MTPA of LNG. Several other Chinese companies have signed agreements for volumes from the Rio Grande plant.

The company’s sales volumes will be supplied from the first three Trains at the Rio Grande facility.

Houston, Texas-based NextDecade has ultimate plans and permits to produce up to 27 MTPA of LNG from five liquefaction Trains at the Rio Grande facility.

The Rio Grande project has been delayed several times since 2020 and was originally expected to start producing LNG in 2023.

NextDecade said it was currently targeting a positive final investment decision on the first three Trains during the first quarter of 2023, with FIDs of its remaining Trains to follow thereafter.

NextDecade had other deals signed in December 2022 and in previous months, including one with Galp Trading S.A. of Portugal.

This was its fifth deal of last year and counting the increase of volumes for ENN Group and the latest Itochu agreement to supply Japan, NextDecade has signed a total of seven supply accords.

NextDecade's other SPAs during 2022 included one with ExxonMobil Corp.

The US major signed a 20-year supply deal with NextDecade at the end of July 2022 through its trading subsidiary in Asia.

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Sempra Infrastructure, a subsidiary of California-based Sempra, has signed another long-term sale and purchase agreement, its third in recent weeks, and this time with French utility Engie.

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