From a press release today:
Cheniere and Bechtel Announce Substantial Completion of Train 1 at Sabine Pass
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.