- Sempra Infrastructure's Port Arthur LNG Phase 2 project received a critical non-FTA export permit from the U.S. Department of Energy.
- The project includes two new liquefaction trains, potentially doubling the facility's capacity to 26 million tonnes per annum (Mtpa).
- Phase 1 construction is ongoing, with commercial operations projected for 2027 and 2028.
Sempra Infrastructure, a subsidiary of Sempra (SRE, Financial), has announced that the U.S. Department of Energy (DOE) has granted a non-FTA export permit for its Port Arthur LNG Phase 2 development project. This authorization allows the export of up to 13.5 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) to countries lacking a free-trade agreement with the United States. The permit marks a significant regulatory milestone, being the first approved since the DOE's recent public interest study.
With this permit, Port Arthur LNG Phase 2 is poised to significantly increase its capacity, doubling the facility’s ability from 13 Mtpa to approximately 26 Mtpa with the inclusion of two new liquefaction trains. This development builds on Sempra's prior Federal Energy Regulatory Commission approval, secured in September 2023.
Sempra has reached preliminary commercial agreements, including a non-binding heads of agreement with Aramco for LNG offtake and equity investment. Additionally, Bechtel has been selected to handle the project's engineering, procurement, and construction (EPC) under a fixed-price contract, reducing potential construction cost uncertainties.
The ongoing construction of Phase 1 is set to commence operations for its two trains in 2027 and 2028. However, further steps such as finalizing commercial agreements, securing financing, and maintaining necessary permits are required before a final investment decision is made. This project fortifies Sempra's strategic position in the global LNG market, particularly in regions like Europe and Asia, where demand is anticipated to rise swiftly.
