Sempra Infrastructure, an affiliate of San Diego-based Sempra, plans to take a final investment decision (FID) on Phase 1 of its two-train 13.5 million ton per annum Port Arthur LNG project in the first quarter of 2023.

“We have made significant progress on advancing development at Port Arthur LNG, where we now expect to take a final investment decision on Phase 1 in the first quarter of next year,” Sempra Chairman and CEO Jeffrey W. Martin said Nov. 3 in a press release related to company’s third-quarter earnings.

The FID announcement comes after the company announced on Oct. 20 the finalization of its fixed-price engineering, procurement and construction (EPC) contract for Port Arthur LNG Phase 1 as well as substantial completion of marketing for the development.

The amended EPC between Port Arthur LNG and Bechtel Energy includes an updated price of approximately $10.5 billion, Sempra said last month.

Earlier this year, Sempra Infrastructure revealed substantial completion of marketing related to Phase 1 with the signing of a series of non-binding agreements with the Polish Oil & Gas Co. (PGNiG), RWE Supply & Trading, INEOS Energy Trading Ltd. and ConocoPhillips Co. Active marketing and development is underway regarding the similarly sized Port Arthur LNG Phase 2 project, the company said.

Robust shale gas production from key U.S. basins, especially the Permian Basin, continues to anchor rising U.S. LNG exports to world markets including Europe, the U.K. and Asia as lower supply flows from the now sanctioned Russia after Moscow’s decision to invade Ukraine earlier this year.

Port Arthur LNG

Port Arthur LNG LLC is developing Sempra’s Port Arthur LNG project, which will consist of a liquefaction and export terminal in southeast Texas with direct access to the U.S. Gulf of Mexico. The project, which will include two phases, would be a low-cost liquefaction facility.

The Port Arthur LNG Phase 1 will include two natural gas liquefaction trains (Trains 1 and 2) and up to three LNG storage tanks, and associated facilities including ancillary support facilities to liquefy and load LNG onto ships. Under optimal conditions, Phase 1 would deliver up to 13.5 million tonnes per annum (mtpa) to supply energy markets worldwide.

Port Arthur LNG Phase 2 would expand the liquefaction-export project with two additional liquefaction trains (Trains 3 and 4) capable of producing an additional 13.5 mtpa under optimal conditions. The Phase 2 expansion aims to satisfy future demand for U.S. LNG supplies and is expected to serve European, Asian and other global markets, according to details on Port Arthur LNG’s website.

Earnings and Cameron LNG

For the third quarter, Sempra announced adjusted earnings of $622 million, up compared to $545 million the previous-year quarter.

“Disciplined execution across our three growth platforms drove strong third-quarter financial results, while also advancing our mission to be North America's premier energy infrastructure company,” Martin said in the release.

Sempra also noted it continues to advance its Cameron LNG Phase 2 project.

The project is under development and the company anticipates announcing a FID on Train 4 after the FEED process is completed, which is expected during the summer of 2023.

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