Sempra revisits choice of Bechtel on Cameron LNG expansion to cut costs
5/13/2024
Sempra LNG is revisiting its selection of Bechtel to build its Cameron LNG expansion project in Louisiana due to rising construction costs, two people familiar with the matter told Reuters.
The Sempra-Bechtel pricing dispute reflects a broader hike in construction and labor costs that are affecting several U.S. liquefied natural gas (LNG) export projects under development and threaten to further delay others. Sempra "has gone back out for an EPC (engineering procurement and construction) contractor for its expansion project," one of the people familiar with the matter said. "High demand for skilled labor for plant construction is causing costs to rise and making some projects too expensive to build," the person added.
Sempra LNG operates Cameron, the third largest U.S. LNG export plant, and is constructing facilities in Mexico and Texas in addition to pursuing the expansion of the Louisiana plant. Cameron LNG Phase 2, a venture between affiliates of Sempra LNG, TotalEnergies, Mitsui and Japan LNG Investment LLC, aims to expand the capacity of the three trains at its 12 MMtpy facility and add a fourth.
Sempra LNG CEO Justin Bird had told Wall Street analysts in March that it was "working with Bechtel on value engineering. And at this stage, we feel it's best to continue those efforts while evaluating other potential EPC contractors."
Related News
Related News
Sign up to Receive Our Newsletter
![](/media/1042/gpenews_300x140.jpg)
- Woodfibre LNG receives BCEAO order to move floatel to site to house non-local workforce
- QatarEnergy, Exxon seek to remove contractor from Texas gas project
- Veolia, Waga Energy and ENGIE collaborate to develop renewable natural gas industry in France
- Congo Brazzaville becomes an LNG exporting country
- Fulcrum LNG to pair with McDermott, Baker Hughes for Guyana gas project
- EU approves law to hit gas imports with methane emissions limit
- Veolia, Waga Energy and ENGIE collaborate to develop renewable natural gas industry in France
- Hawai'i Gas selects Eurus Energy America, Bana Pacific for hydrogen and renewable natural gas projects
- TotalEnergies increases LNG deliveries to Asia with two new contracts
- Desert Mountain Energy Corp. initiates helium production
Comments