Sempra launches $13 billion Port Arthur LNG export project Ship’s crew

Sempra Infrastructure Partners, a subsidiary of Sempra (NYSE: SRE) (BMV: SRE), has reached a definitive investment decision (FID) for the development, construction and operation of Phase 1 of its Port Arthur LNG liquefaction and export project in Jefferson County met , Texas.

The project, previously approved by the US Federal Energy Regulatory Commission, includes two natural gas liquefaction trains, two LNG storage tanks and associated facilities with a rated capacity of approximately 13 million tonnes per year (Mtpa). Train 1 and Train 2 are expected to start commercial operations in 2027 and 2028, respectively.

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 SA, INEOS and ENGIE SA

The total investment for the Port Arthur Phase 1 project is estimated at US$13 billion.

Sempra Infrastructure has also completed its joint venture with a subsidiary of ConocoPhillips and 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 commercializing and developing the competitively positioned Port Arthur Phase 2 LNG project, which is expected to have similar offtake capacity to Phase 1.

“With strong customers, high-profile financiers in ConocoPhillips and KKR, and a world-class contractor in Bechtel, this project has the potential over time to become one of America’s most significant energy infrastructure investments while creating jobs and fueling continued economic growth throughout Texas and the Gulf Coast region,” said Jeffrey W. Martin, Sempra’s Chairman and Chief Executive Officer.

The Phase 1 project is expected to create an estimated 5,000 high-skill jobs during construction and boost the economies of Port Arthur and Jefferson County.

“Sempra’s selection of Port Arthur as the site for a new natural gas liquefaction and export terminal is a strategic decision that will solidify Texas’ position as the energy capital of the world,” said Texas Gov. Greg Abbott. “With a highly skilled workforce, a business-friendly climate, and as the nation’s leader in LNG exports, Texas is the best place to expand LNG operations to unlock the full economic potential of the United States in such a critical industry. LNG expansion is imperative to America’s energy security, and the State of Texas looks forward to working with Sempra to advance that mission and bring more jobs and better opportunities to hard-working Texans.”

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