Elliott secures equipment supply deal for Sempra’s Port Arthur LNG
Elliott secures equipment supply deal for Sempra's Port Arthur LNG - Offshore Energy
Elliott secures equipment supply deal for Sempra’s Port Arthur LNG
Elliott Group, a wholly-owned subsidiary of Ebara Corporation, has secured an order to supply cryogenic rotating equipment for the Port Arthur LNG Phase 1 project being developed by Sempra Infrastructure in Jefferson County, Texas.
Elliott said it was awarded the contract by Bechtel Energy, a company performing the detailed engineering, procurement, construction, commissioning, startup, performance testing, and operator training activities for the project.
Under the contract, Elliott will supply cryogenic pumps, expanders, boil-off gas (BOG) compressors, and end flash gas (EFG) compressors.
Besides Elliott, earlier this year, Fulkrum was contracted to provide third-party inspection services on the project. Air Products will provide its proprietary LNG process technology, equipment and advisory services while Baker Hughes will supply two main refrigerant compressors (MRCs) for the project.
The Port Arthur LNG Phase 1 project is fully permitted and is designed to include two natural gas liquefaction trains, two LNG storage tanks and associated facilities with a nameplate capacity of approximately 13 million tonnes per annum (mtpa). The expected commercial operation dates for Train 1 and Train 2 are 2027 and 2028, respectively.
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Sempra reaches FID for Port Arthur LNG
Fulkrum to provide inspection services for Sempra’s PALNG project
The final investment decision (FID) for the project was reached in March this year. Total capital expenditures for the Port Arthur Phase 1 are estimated at $13 billion.
The long-term contractable capacity of approximately 10.5 mtpa is fully subscribed under binding long-term agreements with ConocoPhillips, RWE Supply and Trading, PKN ORLEN, INEOS and ENGIE, all of which became effective upon reaching FID.
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Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.