GLDD wins Port Arthur LNG dredge and disposal contract

Port Arthur LNG marine facilities will including two marine berths for LNG carrier berthing and loading of LNG. [Image: Port Arthur LNG]

Bechtel Energy Inc. has awarded Great Lakes Dredge & Dock Corporation (NASDAQ: GLDD) the marine dredging and disposal contract for Phase 1 of the Port Arthur LNG project. Bechtel is managing the Phase 1 project in partnership with Sempra Infrastructure.

The Port Arthur LNG project is a natural gas liquefaction and export terminal in Southeast Texas with direct access to the Gulf of Mexico.

The proposed project is designed to include:

• Two natural gas liquefaction trains capable of producing, under optimal conditions, up to approximately 13.5 mtpa in the aggregate, or approximately 698 billion cubic feet of natural gas per year
• Up to three liquefied natural gas (LNG) storage tanks
• Marine facilities, including two marine berths for LNG vessel berthing and loading of LNG
• Natural gas liquids and refrigerant storage
• Feed gas pre-treatment
• Truck loading and unloading areas
• Combustion turbine generators for self-generation of electrical power
• New natural gas pipelines to deliver natural gas to the terminal.

The scope of GLDD’s work on this project is to dredge the Port Arthur LNG berthing pocket on the Port Arthur Ship Canal. The berthing pocket and turning basin will connect to the Port Arthur Ship Canal and allow LNG vessels to berth, load and depart safely. A significant portion of the dredged materials will be placed by Great Lakes within designated beneficial use of dredged material (BUDM) areas to restore and enhance marshlands within a local wildlife refuge. Great Lakes is expected to start this project later this year.

GLDD did not disclose the value of the contract, but president and CEO Lasse Petterson said that, with this contract, Great Lakes’ backlog and recent pending awardable work now exceed $1 billion.

“Our proven performance and safety culture allows us to support the growth of LNG export in the U.S., which is a necessity in balancing energy affordability and overall sustainability,” said Petterson.

The Port Arthur LNG contract is the second major LNG terminal project to be recently awarded GLDD, coming hard on the heels of its July 21 announcement of a project that Petterson said then would be “the largest undertaken by Great Lakes in its 133-year history.” That project involves the performance of essential improvements to the Brownsville Ship Channel for the NextDecade Corporation Rio Grande LNG project.