Venture Global Signs CB&I for EPC Work at Calcasieu Pass LNG Export Terminal in Louisiana

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Researched by Industrial Info Resources (Sugar Land, Texas)--Venture Global LNG Incorporated, one of many U.S.-based companies seeking to ride the wave of demand for liquefied natural gas (LNG) exports, awarded a contract valued at nearly $200 million to Chicago Bridge & Iron Company (NSYE:CBI) (CB&I) (Granvenhage, Netherlands) for the engineering, procurement and construction (EPC) of two LNG storage tanks at Venture's Calcasieu Pass export facility in Cameron, Louisiana. Industrial Info is tracking more than $5.6 billion in active projects related to Calcasieu Pass.

Venture expects to produce 5 million metric tons per year of LNG in the $2.5 billion first phase of Calcasieu Pass, for which it will construct numerous buildings and install five modules, each producing 1 million metric tons per year. The company also is looking at a $2.5 million second phase, which would have a similar setup for another 5 million metric tons per year. Construction on the first phase is expected to begin later this year; the second phase would not kick off until late 2020, at the earliest. For more information, see Industrial Info's project reports on Phase I and Phase II.

CB&I will provide, on a turn-key basis, two single-containment LNG storage tanks. Construction on the tanks is expected to begin in 2018, according to CB&I. GE Oil & Gas Incorporated--which officially merged with Baker Hughes Incorporated (NYSE:BHI) (Houston, Texas) earlier this week, creating the second-largest oilfield services company in the world--already is set to provide technology services for the project.

Shell LNG North America, a subsidiary of Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands), agreed in early 2016 to purchase 1 million tons per year LNG from Calcasieu Pass. The sales and purchase agreement has a 20-year term, beginning with commercial operations at Calcasieu Pass, with an option for Shell to extend the term.

The natural gas feedstock will be delivered via Venture's TransCameron Pipeline, which will include a $55 million east lateral and a $30 million west lateral. Each portion will be 42 inches in diameter and carry up to 2 billion cubic feet per day; the eastern segment will run 23.8 miles from Calcasieu Pass to Grand Chenier, Louisiana, while the western segment will run 18.3 miles from Calcasieu Pass to Johnson's Bayou, Louisiana. For more information, see Industrial Info's project reports on the eastern and western laterals.

Venture also is planning a $500 million gas-turbine unit addition and a $50 million natural gas pretreatment unit addition at Calcasieu Pass. The combined-cycle turbine would power the facility with 720 megawatts (MW), while the pretreatment unit would process 1.35 billion cubic feet per day of natural gas. For more information, see Industrial Info's project reports on the turbine and pretreatment units.

Bob Pender and Mike Sabel, Venture's co-chief executive officers, said in a press release that their company worked with CB&I to develop "a detailed scope and agreement" and that Venture is "pleased to have an agreement with the premiere LNG tank contractor in the world."

Venture also is at work on the $5 billion Plaquemine LNG Production & Export Terminal in Davant, Louisiana, and its $5 billion second-phase expansion, as well as a $500 million first gas turbine, a $500 million second gas turbine and a $50 million pretreatment unit. The complex, which also has GE Oil & Gas onboard as a technology provider, would produce 20 million metric tons per year of LNG if both phases are built. For more information, see Industrial Info's project reports on Phase I and Phase II.

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