HOUSTON, May 31, 2016 /PRNewswire/ -- Cheniere Energy
Partners, L.P. ("Cheniere Partners") (NYSE MKT: CQP) and Bechtel
today announced that on May 27, 2016
they achieved Substantial Completion of Train 1 of the Sabine Pass liquefaction project in
Cameron Parish, Louisiana (the
"SPL Project"). Commissioning has been completed and Bechtel is
turning over care, custody, and control of Train 1 to Cheniere
Partners.
"Today, together with our EPC contractor Bechtel, we announce
that Train 1 of the SPL Project has achieved Substantial
Completion, and we are taking care, custody, and control of Train 1
months ahead of the guaranteed completion date and on budget," said
Jack Fusco, CEO of Cheniere
Partners. "I would like to thank Cheniere's professionals who have
worked tirelessly since 2012 to complete this significant
milestone. I would also like to congratulate our EPC partner
Bechtel for this achievement and look to achieve many more."
"I congratulate the entire team – our customer Cheniere
Partners, our global suppliers, and the Bechtel team – on the
extraordinary achievement of bringing Train 1 of the SPL Project to
life by putting their expertise and experience into finding
innovative solutions to the challenges of megaproject engineering
and construction," said Jack
Futcher, president of Bechtel's Oil, Gas and Chemicals
business unit. "Cheniere Partners is at the forefront of
North America's LNG industry, and
we are looking forward to our continued collaboration in delivering
energy to global markets."
Under a sale and purchase agreement ("SPA") with BG Gulf Coast
LNG, LLC ("BG"), the date of first commercial delivery ("DFCD") for
Train 1 is expected to occur in November
2016, upon which the SPA's 20-year term commences. Prior to
DFCD, BG has certain rights to early cargoes produced from Train 1
as described in the SPA.
Now that Train 1 has achieved substantial completion, financial
results from its LNG sales going forward will be reflected in the
statement of operations.
Cheniere Partners, through its subsidiary, Sabine Pass
Liquefaction, LLC ("SPL"), is developing and constructing natural
gas liquefaction facilities at the Sabine Pass LNG terminal
adjacent to the existing regasification facilities. Cheniere
Partners, through SPL, plans to construct over time up to six
liquefaction trains, which are in various stages of development and
construction. Train 1 is complete and has achieved substantial
completion, Train 2 is undergoing commissioning and is expected to
begin producing LNG in due course, Trains 3 through 5 are under
construction and Train 6 is fully permitted. Each liquefaction
train is expected to have a nominal production capacity of
approximately 4.5 million tonnes per annum ("mtpa") of LNG. SPL has
entered into six third-party LNG sale and purchase agreements
("SPAs") that in the aggregate equate to approximately 19.75 mtpa
of LNG and commence with the date of first commercial delivery of
Trains 1 through 5 as specified in the respective SPAs. For
additional information, please refer to the Cheniere Partners
website at www.cheniere.com and Form 10-Q for the period ending
March 31, 2016, filed with the
Securities and Exchange Commission.
Forward-Looking Statements
This press release contains certain statements that may include
"forward-looking statements." All statements, other than statements
of historical facts, included herein are "forward-looking
statements." Included among "forward-looking statements" are, among
other things, (i) statements regarding Cheniere Partners' business
strategy, plans and objectives, including the development,
construction and operation of liquefaction facilities, (ii)
statements regarding expectations regarding regulatory
authorizations and approvals, (iii) statements expressing beliefs
and expectations regarding the development of Cheniere Partners'
LNG terminal and liquefaction business, (iv) statements regarding
the business operations and prospects of third parties, (v)
statements regarding potential financing arrangements, and (vi)
statements regarding future discussions and entry into contracts.
Although Cheniere Partners 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 Partners' 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 Partners' 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 Partners
does not assume a duty to update these forward-looking
statements.
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SOURCE Cheniere Energy Partners, L.P.