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Sempra launches Port Arthur LNG project

US SEMPRA Infrastructure Partners has reached world-class contractor in Bechtel, this project
a final investment decision (FID) for the devel- has the potential to become one of America’s
ConocoPhillips is also opment, construction and operation of the Port most significant energy infrastructure invest-
purchasing a 30% Arthur LNG phase 1 project in Jefferson County, ments over time, while creating jobs and spur-
interest and 5mn Texas. ring continued economic growth across Texas
tonnes per year (tpy) of The subsidiary of Sempra closed its joint and the Gulf Coast region,” he said.
LNG offtake from the venture with an affiliate of ConocoPhillips and “Sempra’s selection of Port Arthur as the
project under a 20-year announced an agreement to sell an indirect, location for a new natural gas liquefication and
sale and purchase non-controlling interest in the project to an export terminal is a strategic decision that will
agreement (SPA). infrastructure fund managed by KKR, which cement Texas’ position as the energy capital of
will purchase a 25% to 49% indirect, non-con- the world,” said Texas Governor Greg Abbott.
trolling interest in the Port Arthur LNG phase “With a highly skilled workforce and busi-
1 project. ness-friendly climate, and as a national leader
ConocoPhillips is also purchasing a 30% in LNG exports, Texas is the prime location to
interest and 5mn tonnes per year (tpy) of LNG expand LNG operations to unleash the United
offtake from the project under a 20-year sale and States’ full economic potential in such a critical
purchase agreement (SPA). industry.”
Sempra in addition announced the closing of The Port Arthur LNG phase 1 project is fully
the project’s $6.8bn non-recourse debt financing permitted and is designed to include two nat-
and the issuance of the final notice to proceed ural gas liquefaction trains, two LNG storage
under the project’s engineering, procurement tanks and associated facilities with a nameplate
and construction (EPC) agreement. capacity of approximately 13mn tpy. Total capital
And Sempra has contracted with global engi- expenditures for the Port Arthur phase 1 project
neering, construction and project management are estimated to be $13bn.
firm Bechtel Energy. The long-term contractable capacity of
Lastly, Sempra issued a final notice to proceed approximately 10.5mn tpy is fully subscribed
for the project. The expected commercial oper- under binding long-term agreements with
ation dates for Train 1 and Train 2 are 2027 and strong counterparties – ConocoPhillips, RWE
2028 respectively. Supply and Trading, PKN ORLEN SA, INEOS
“At Sempra, we believe bold, forward-looking and ENGIE SA, all of which became effective
partnerships will be central to solving the world’s upon reaching FID.
energy security and decarbonisation challenges,” Sempra is also actively marketing and devel-
said Sempra’s chairman and CEO, Jeffrey Martin. oping the competitively positioned Port Arthur
“With strong customers, top-tier equity LNG phase 2 project, which is expected to have
sponsors in ConocoPhillips and KKR and a similar offtake capacity to phase 1. ™

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