US player Cheniere Energy intends to award an engineering, procurement and construction contract for its proposed Stage 3 expansion at the Corpus Christi liquefied natural gas export project in Texas in the coming months as it closes in on what is targeted as a 2020 final investment decision, writes Caroline Evans.

Cheniere chief executive Jack Fusco said in a recent earnings call that the company was in the process of evaluating bids for the fully wrapped lump-sum turnkey project.

He did not disclose further details on the tender process or say who has submitted bids.

Bechtel has been Cheniere's contractor of choice and has built the large-scale trains for the initial phases at Corpus Christi and the Sabine Pass LNG facility in Louisiana.

The Stage 3 project, however, envisages the build-out of up to seven mid-scale liquefaction units producing 9.5 million tonnes per annum.

Cheniere has already signed deals with Permian producers Apache and EOG Resources to supply feed gas to the expansion, and last week Fusco signalled that more deals could be coming.

"We continue to pursue additional (integrated production marketing) transactions, primarily in the Permian, given Corpus Christi's advantaged location, with a focus on large, investment-grade producers," Fusco said.

The company meanwhile logged a third-quarter net loss of $318 million, or $1.25 per share, compared to net income of $65 million, or 26 cents per share, in the same period a year ago.

Commenting on its results, Cheniere said that total operating costs jumped as it had more trains on line this year than this time last year.

It also undertook maintenance and "related activities" at Sabine Pass LNG.

The company said it took an impairment charge on an investment in its Midship pipeline system, which connects the Anadarko basin of Oklahoma to US Gulf Coast markets.

Cheniere saw lower margins on income from cargoes because of lower pricing on LNG sold by the company's marketing arm.

These were offset, however, by an increase in LNG volumes recognised in income and lower net income attributable to non-controlling interest.

The figures were also dragged down by charges related to changes in fair value of commodity and foreign exchange derivatives and increased interest expense, as well as losses related to interest rate derivatives, Cheniere said.

Some 108 cargoes were exported from Cheniere facilities during the third quarter, compared with around 70 this time last year.

Cheniere has five trains currently operating at Sabine Pass with two online at Corpus Christi.

A sixth Sabine Pass LNG train is expected to be substantially complete in the first half of 2023, while the third Corpus Christi train is now expected on line in the first half of 2021.

Cheniere previously targeted a Corpus Christi LNG Train 3 start-up date for the end of 2021.

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Cheniere set to award Corpus Christi deal