Page 11 - NorthAmOil Week 12 2023

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Sempra announces FID on

Port Arthur LNG project

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

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