On 20th March 2023, Sempra announced that its subsidiary, Sempra Infrastructure, has reached a positive final investment decision (FID) for the development, construction and operation of the Port Arthur LNG Phase 1 project in Jefferson County, Texas.
According to the company, the Port Arthur LNG Phase 1 project is fully permitted and is designed to include two natural gas liquefaction trains, two liquefied natural gas (LNG) storage tanks and associated facilities with a nameplate capacity of approximately 13 million tonnes per annum (Mtpa). Total capital expenditures for the Port Arthur Phase 1 project are estimated at $13 billion.
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.
“Our strategic LNG partnership with Sempra will help supply growing global demand for natural gas, a lower greenhouse gas emissions-intensity fuel expected to play a critical role in the energy transition and global energy mix going forward,” said Ryan Lance, ConocoPhillips chairman and chief executive officer.
“ConocoPhillips has more than 60 years of experience with LNG, and we look forward to continuing to build our LNG portfolio and expanding our role in delivering a lower-carbon future that strengthens U.S. and global energy security” , added.
The company comments that Sempra Infrastructure is targeting 20% to 30% of indirect ownership interest in the project, subject to the closing of the KKR sale.
Sempra Infrastructure has contracted with global engineering, construction and project management firm Bechtel Energy Inc. and has issued a final notice to proceed for the project. The expected commercial operation dates for Train 1 and Train 2 are 2027 and 2028, respectively.
We’re proud to partner with Sempra to deliver a world-class LNG facility. Building from mature, scalable energy technologies helps safeguard our energy supplies and promote the transition to lower-carbon energy.
..said Brendan Bechtel, Chairman and CEO of Bechtel. “Bechtel has a record of delivering LNG infrastructure on the U.S. Gulf Coast and bringing quality jobs and training opportunities to local communities. The 5,000 construction jobs this project creates will provide outstanding opportunities for craft professionals — growing a skilled workforce that will benefit the region for years to come.”
The company says that Sempra Infrastructure believes that building strong relationships and supporting the communities where its employees live and work is fundamental to how it does business. Moreover, the company focuses its community development initiatives on local priorities including education and leadership development, environmental stewardship and safety.
Since 2015, Port Arthur LNG has invested more than $40 million to support Jefferson County communities, including working with local vendors to procure materials and services for the relocation of a 3.5-mile portion of Highway 87 and on grants to more than 60 local non-profits, schools and business development groups.
“Sempra has long been an economic driver for Jefferson County here in Southeast Texas, and this new Port Arthur LNG facility will continue that trend by bringing thousands of jobs, new markets for natural gas and more energy security for our nation,” Speaker of the Texas House of Representatives Dade Phelan said. “Texas House District 21 is proud of this latest development that showcases our great state’s leadership in economic development, job creation and energy production.”
