Following clearance from the Federal Energy Regulatory Commission, Sempra has the option to increase the size of its liquefied natural gas project in Port Arthur, valued at $13 billion. The proposed Phase II expansion project would entail the addition of two production units, thereby doubling the number of units and increasing the project’s capacity to approximately 27 million metric tons of LNG per annum. The first phase of the project, with an anticipated capacity of 13.5 million metric tons, is currently under construction and is scheduled to commence operations in 2027.
This regulatory milestone, achieved on Thursday, enables Sempra Infrastructure, a subsidiary of the San Diego-based energy conglomerate, to pursue its objective of transforming the Port Arthur LNG facility into a regional energy hub. Earlier this month, Sempra sold a 42% stake in the first phase of the Port Arthur project to KKR, which owns 20% of Sempra Infrastructure. Houston oil company ConocoPhillips also holds a 30% stake in the Port Arthur project.
Port Arthur LNG is one of several LNG projects being developed in the gas-rich Gulf Coast region. The gas that Sempra intends to export would cater to markets in Europe, which is seeking to replace Russian gas lost due to the conflict in Ukraine, and in Asia, where gas is increasingly being used as a substitute for coal.
The expansion project is also expected to include an additional LNG storage tank and marine berth. Furthermore, Sempra has acquired 38,000 acres of underground pore space to support the proposed Titan Carbon Sequestration project, which is located near the Port Arthur LNG facility and could capture the associated emissions.“The proposed projects by Sempra Infrastructure would create new, high-paying jobs, increase innovative business in the region and continue to bolster the reputation of the State of Texas as a global energy leader,” Sempra Infrastructure CEO Justin Bird said in a statement.
