Sempra Infrastructure Partners, a subsidiary of Sempra (NYSE: SRE) (BMV: SRE), has reached a final investment decision (FID) for the development, construction and operation of Phase 1 of its Port Arthur LNG liquefaction and export project in Jefferson County, Texas.
The project, which has already been approved by the U.S. Federal Energy Regulatory Commission, includes two natural gas liquefaction trains, two liquefied natural gas storage tanks and associated facilities with a nameplate capacity of approximately 13 million tonnes per annum (Mtpa). Train 1 and Train 2 are expected to begin commercial operations in 2027 and 2028, respectively.
The long-term contractable capacity of approximately 10.5 Mtpa is fully subscribed under binding long-term agreements with ConocoPhillips, RWE Supply and Trading, PKN ORLEN S.A., INEOS and ENGIE S.A.
The total capital expenditures for the Port Arthur Phase 1 project are estimated at $13 billion.
Sempra Infrastructure has also closed its joint venture with an affiliate of ConocoPhillips, as well as announced an agreement to sell an indirect, non-controlling interest in the project to an infrastructure fund managed by KKR. The company is also actively marketing and developing the competitively positioned Port Arthur LNG Phase 2 project, which is expected to have similar offtake capacity to Phase 1.
“With strong customers, top-tier equity sponsors in ConocoPhillips and KKR and a world class contractor in Bechtel, this project has the potential to become one of America’s most significant energy infrastructure investments over time, while creating jobs and spurring continued economic growth across Texas and the Gulf Coast region,” said Jeffrey W. Martin, chairman and chief executive officer of Sempra.
The Phase 1 project is expected to create an estimated 5,000 highly skilled jobs during construction and boost the economies in Port Arthur and Jefferson County.
“Sempra’s selection of Port Arthur as the location for a new natural gas liquefication and export terminal is a strategic decision that will cement Texas’ position as the energy capital of the world,” said Texas Gov. Greg Abbott. “With a highly skilled workforce and business-friendly climate, and as a national leader in LNG exports, Texas is the prime location to expand LNG operations to unleash the United States’ full economic potential in such a critical industry. Expanding LNG is imperative to American energy security, and the State of Texas looks forward to working alongside Sempra to advance this mission and bring more jobs and greater opportunities to hardworking Texans.”
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