Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE), has announced the signing of a fixed-price engineering, procurement and construction (EPC) contract with Bechtel Energy for the Port Arthur LNG Phase 2 project in Texas. This partnership marks a significant milestone in the development of this crucial energy infrastructure project, which is expected to significantly enhance the supply of secure, abundant and reliable U.S. natural gas to customers around the globe.
“We are thrilled to achieve this milestone with Bechtel for the Port Arthur LNG Phase 2 development project and are confident that our continued collaboration with this world-class construction firm on the site will further strengthen our ability to execute this project,” said Justin Bird, CEO of Sempra Infrastructure. “Building on the success of Port Arthur LNG Phase 1, which is currently under construction, the Phase 2 project is expected to further enhance the supply of secure, abundant and reliable U.S. natural gas to customers around the globe.”
“We are excited for the opportunity to advance our partnership with Sempra Infrastructure on the Port Arthur LNG Phase 2 project, a vital project that will play a crucial role in meeting the world’s increasing need for cleaner and more reliable energy,” said Paul Marsden, President of Bechtel Energy. “This partnership positions Bechtel and Sempra Infrastructure to not only deliver a transformative energy infrastructure project but also brings additional significant economic growth and development opportunities to the local community.”
Under the EPC contract, Bechtel will be responsible for detailed engineering, procurement, construction, commissioning, startup, performance testing, and operator training activities for the project. The agreement also includes the ability to conduct pre-final investment decision work, aiming to provide greater certainty regarding project costs and timelines.
The Port Arthur LNG Phase 2 project is competitively positioned and is currently under active marketing and development. It received authorization from the Federal Energy Regulatory Commission in 2022 and is expected to include two liquefaction trains capable of producing approximately 13 Mtpa of LNG. This would increase the total liquefaction capacity of the facility from approximately 13 Mtpa to up to 26 Mtpa. The Port Arthur LNG Phase 1 project, which consists of trains 1 and 2, as well as two LNG storage tanks and associated facilities, is currently under construction. Construction is progressing steadily, with the expected commercial operation dates for train 1 and train 2 set for 2027 and 2028, respectively.
In June 2023, Sempra Infrastructure and a subsidiary of Aramco signed a non-binding heads of agreement, outlining the potential purchase of 5 Mtpa of LNG and a 25% equity investment in the Port Arthur LNG Phase 2 project. Additionally, in 2022, Port Arthur LNG Phase 2 and INEOS entered into a non-binding agreement for an offtake capacity of 0.2 Mtpa from the project.
It is important to note that the development of the Port Arthur LNG Phase 2 project is subject to various risks and uncertainties, including completing required commercial agreements, securing and maintaining all necessary permits, obtaining financing, and reaching a final investment decision, among other factors.
Sempra Infrastructure, headquartered in San Diego, California, is committed to delivering energy for a better world by developing, building, and operating low carbon solutions, energy networks, and LNG infrastructure that are anticipated to play a crucial role in the energy systems of the future. Through the combined strength of its assets in North America, Sempra Infrastructure is helping to meet evolving energy needs, creating access to renewable power and natural gas, and advancing carbon sequestration and clean hydrogen. The company is a recognized industry leader, having received the 2023 World Energy Transition Award at the World LNG Summit.
Sempra Infrastructure is a subsidiary of Sempra (NYSE: SRE), a leading North American energy infrastructure company. For more information, visit Sempra Infrastructure’s website or connect with them on social media.
