Cheniere Partners Signs EPC Contract with Bechtel for the First Phase of the Sabine Pass Expansion Project and Issues Limited Notice to Proceed

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Key Terms

engineering, procurement and construction (epc) technical

Engineering, procurement and construction (EPC) is a project delivery method where a single contractor designs the project, buys the major equipment and materials, and builds the facility from start to finish, like hiring one contractor to design and build a house and buy the appliances. Investors care because EPC contracts bundle technical and schedule risk with a single counterparty and often include fixed prices and deadlines, which can affect project costs, profit visibility and cash flow.

liquefied natural gas (lng) technical

Liquefied natural gas (LNG) is natural gas that has been cooled until it becomes a liquid so it can be stored and shipped more easily, similar to packing a bulky gas into compact bottles for transport. It matters to investors because LNG turns a local fuel market into a global one, affecting supply, prices and the value of companies that produce, transport or store the fuel when demand, shipping capacity or regulation change.

final investment decision (fid) financial

A final investment decision (FID) is the point when a company or investor commits to proceeding with a project or purchase after reviewing all relevant information and options. It is like deciding to buy a house after careful consideration, signaling that plans are now set in motion. This decision is important because it marks the official start of spending significant money and resources on the project.

federal energy regulatory commission (ferc) regulatory

An independent U.S. federal agency that oversees the interstate transmission and wholesale markets for electricity and natural gas, reviews hydroelectric licenses and pipeline rates, and enforces rules for those sectors. Acting like a referee or traffic controller for the energy system, its permits, rate decisions and market rules can speed or delay projects, alter operating costs and revenues, and therefore materially affect the value and risk of energy companies and investments.

department of energy (doe) regulatory

A national government agency that sets energy policy, oversees major energy programs, funds research and enforces rules for production, distribution and technology. Think of it as both a referee and a sponsor for the energy sector: it makes the rules that affect costs and permits, and provides funding or approvals that help new technologies scale. Investors watch its actions because changes in regulations, subsidies, or research priorities can shift company profits, project viability and market value.

non-free trade agreement (non-fta) countries regulatory

Countries that do not have a free trade agreement with a company’s home country or trading partner. That means goods and services moving between these countries often face higher taxes, customs delays, or more paperwork—like taking a toll road instead of a free highway—raising costs and uncertainty. Investors watch this because sales, profit margins, and supply chains can be harder or more expensive to manage when selling into or sourcing from non-FTA countries.

boil-off gas technical

Boil-off gas is vapor that forms when very cold liquid fuels such as liquefied natural gas warm up and evaporate inside storage tanks or transport vessels. For investors it matters because this vapor represents product loss, operational cost or usable fuel and affects profitability, safety and logistics — like a cooler leaking cold as ice melts, forcing companies to manage, capture or burn that lost material.

debottlenecking technical

Debottlenecking is the process of identifying and fixing the specific parts of a production, supply chain, or project that limit overall output or efficiency, so the whole system can run faster or produce more without a full rebuild. For investors it matters because successful debottlenecking can increase revenue and margins, shorten delivery times, and often costs less and happens faster than building new capacity—like widening the single narrow lane on a busy bridge to free up traffic flow.

05/28/2026 - 08:30 AM

HOUSTON--(BUSINESS WIRE)-- Cheniere Energy Partners, L.P. (“Cheniere Partners” or the “Company”) (NYSE: CQP) announced today that its subsidiary, Sabine Pass Liquefaction Stage V, LLC (“SPLV”), has entered into a lump sum, turnkey, engineering, procurement and construction (“EPC”) contract with Bechtel Energy, Inc. (“Bechtel”) for the first phase of the SPL Expansion Project (“Phase 1”). In addition, SPLV has released Bechtel to commence early engineering and procurement for Phase 1 under a limited notice to proceed (“LNTP”).

The SPL Expansion Project is being developed for up to three large-scale liquefaction trains with an expected total peak production capacity of up to approximately 20 million tonnes per annum (“mtpa”) of liquefied natural gas (“LNG”), inclusive of estimated debottlenecking opportunities and supporting infrastructure. The SPL Expansion Project is being executed in a phased approach. The EPC agreement with Bechtel for Phase 1 includes a single train, Train 7, a boil-off gas re-liquefaction unit, along with supporting infrastructure and tie-ins to the existing Sabine Pass LNG Terminal. Inclusive of estimated debottlenecking, Phase 1 has an expected total production capacity of over 6 mtpa of LNG. Phase 1 is commercially underpinned by long-term agreements with creditworthy counterparties, and a positive final investment decision (“FID”) on Phase 1 is subject to, among other things, receipt of necessary regulatory approvals and an acceptable financing arrangement.

The Federal Energy Regulatory Commission (FERC) application for authorization to site, construct and operate the SPL Expansion Project, as well as the Department of Energy (DOE) application authorizing the export of LNG to non-free trade agreement (non-FTA) countries, remain pending. Cheniere Partners expects to reach FID on Phase 1 by early 2027.

“We are pleased to once again partner with Bechtel on the first phase of the SPL Expansion Project, and we look forward to building upon the unmatched track record for execution excellence the Cheniere and Bechtel relationship has established while successfully building our leading LNG platform. The EPC contract and the issuance of LNTP mark important steps toward FID, which we expect to occur by early next year. We are excited to have the project underway and are laser-focused on the remaining steps required to reach FID,” said Jack Fusco, Cheniere’s Chairman, President and Chief Executive Officer. “The SPL Expansion Project commences as LNG market dynamics highlight the criticality of secure supply in the global energy system. We look forward to bringing this much-needed LNG capacity to the market and providing our customers with reliable and flexible LNG from Train 7.”

About Cheniere Partners

Cheniere Partners owns the Sabine Pass LNG terminal located in Cameron Parish, Louisiana, which has natural gas liquefaction facilities with a total production capacity of over 30 mtpa of LNG in operation. The Sabine Pass LNG terminal also has operational regasification facilities that include five LNG storage tanks, vaporizers, and three marine berths. Cheniere Partners also owns the Creole Trail Pipeline, which interconnects the Sabine Pass LNG terminal with a number of large interstate and intrastate pipelines.

For additional information, please refer to the Cheniere Partners website at www.cheniere.com and Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, 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 or present facts or conditions, included herein are “forward-looking statements.” Included among “forward-looking statements” are, among other things, (i) statements regarding Cheniere Partners’ financial and operational guidance, business strategy, plans and objectives, including the development, construction and operation of liquefaction facilities, (ii) statements regarding Cheniere Partners’ anticipated quarterly distributions and ability to make quarterly distributions at the base amount or any amount, (iii) statements regarding regulatory authorization and approval expectations, (iv) statements expressing beliefs and expectations regarding the development of Cheniere Partners’ LNG terminal and liquefaction business, (v) statements regarding the business operations and prospects of third-parties, (vi) statements regarding potential financing arrangements, (vii) statements regarding future discussions and entry into contracts, and (viii) statements relating to our goals, commitments and strategies in relation to environmental matters. 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.