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Oil and gas industry contract news: 19 December 2014

Hydrocarbon Engineering,


Cheniere Energy, Inc. has announced that its subsidiary, Corpus Christi Liquefaction LLC, has entered into an LNG sale and purchase agreement with EDP Energias de Portugal SA under which EDP has agreed to purchase approximately 0.77 million tpy of LNG upon the commencement of operations of Train 3 of the LNG export facility being developed near Corpus Christi, Texas. The Corpus Christi Liquefaction Project is being designed and permitted for up to three trains, with aggregate design production capacity of approximately 13.5 million tpy of LNG.

Under the SPA, EDP will purchase LNG on a free on board basis for a purchase price indexed to the monthly Henry Hub price plus a fixed component. LNG will be loaded onto EDP’s vessels. The term of the SPA will extend for 20 years beyond the date of first commercial delivery of the third train of the Corpus Christi Liquefaction Project, with an extension option of up to 10 years. Deliveries from Train 3 are expected to occur as early as 2019.


GE and Sabine Pass Liquefaction have entered into a US$1 billion 20 year service contract under which GE will provide spare parts and planned inspections, maintenance services and round the clock technical support for the gas turbines and refrigerant compressors on the first four LNG trains currently under construction at the Sabine Pass LNG export facility. Each train will have six gas turbines and is expected to have nominal capacity to produce approximately 4.5 million tpy of LNG.


Jacobs Engineering Group Inc., announced that it has been selected by BP to continue its role as strategic supplies of mid cap work on a global basis. Company officials did not disclose the contract value, but noted that it replaces Jacob’s previous contract that has been in place since 2002. The new contract includes two multi year regional framework agreements, under which Jacobs is providing engineering, procurement and construction management services as well as personnel on loan at BP’s refinery, petrochemical and terminal sites globally. Jacobs supports this work from its offices in the UK, US, The Netherlands, Germany, Belgium, South Africa and Australia; bringing technical expertise, a depth of global resources to support BP around the world; plus deep knowledge of BP’s facilities, practices, and business objectives.


UOP LLC, a Honeywell company, has announced that PetroChina Guangxi Petrochemical Company (GXPC) is using UOP process technology to purify hydrogen at a new refining complex in Qinzhou, Guangxi province, China. With support from UOP’s local service team, GXPC successfully commissioned a UOP Polybed PSA system to purify hydrogen, which is a critical ingredient used in modern refining processes to produce clean transportation fuels, including diesel, gasoline and jet fuel. GXPC is a subsidiary of PetroChina, one of China’s largest state owned enterprises.

In addition to PSA technology, GXPC is also using several other UOP technologies to produce high quality fuels including: CCR Platforming technology, two stage unicracking technology, unionfining technology, hydrotreating technology, penex technology, and fcc technology.

Edited from press releases by Claira Lloyd

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