PORT ARTHUR, TEXAS — Sempra Infrastructure Partners, a subsidiary of energy infrastructure firm Sempra (NYSE: SRE), has released plans for Phase I of Port Arthur LNG, a $13 billion natural gas liquefaction and export terminal in Port Arthur.
Phase I of the project will include two liquefaction trains capable of producing up to 13.5 million metric tons per annum (MTPA) of liquefied natural gas (LNG); up to three LNG storage tanks; marine facilities, including two marine berths for LNG vessel berthing and loading; natural gas liquids and refrigerant storage; feed gas pre-treatment and truck loading areas; and combustion turbine generators for on-site generation of electrical power.
A three-mile portion of State Highway 87 between the Intracoastal Waterway and Keith Lake Pass will also be relocated to accommodate the development of Phase I, which is located along the Sabine-Neches ship channel, offering direct access to the Gulf of Mexico.
Sempra has closed a joint venture with an affiliate of ConocoPhillips for Phase I of the project, which has been approved by the Federal Energy Regulatory Commission (FERC). The firm has also agreed to sell an indirect, non-controlling interest in the development to an infrastructure fund managed by KKR, and has closed on $6.8 billion in non-recourse debt financing for the project.
Bechtel Energy Inc. has been selected as the engineering, procurement, construction and commissioning contractor for Phase I, which is scheduled to begin commercial operation in 2027. Phase II of the project, which has not been approved by FERC, would include the development of two additional liquefaction trains and ancillary equipment.
Phase I of the development is expected to create an estimated 5,000 jobs during construction. Citi advised Sempra on various aspects of the development, and J.P. Morgan Securities LLC acted as advisor on project financing.
San Diego-based Sempra provides for the daily energy needs of nearly 40 million consumers across North America. The company’s stock price closed at $142 per share on Wednesday, March 22, down from $152.33 one year ago.
—Katie Sloan