Sempra Infrastructure Partners, LP, a 70%-owned subsidiary of energy infrastructure company Sempra, has reached a positive final investment decision (FID) for the development, construction and operation of the Port Arthur LNG Phase 1 project in Southeast Texas with direct access to the Gulf of Mexico.
Sempra Infrastructure also finalised its joint venture with an affiliate of ConocoPhillips, entered an agreement to sell an indirect, non-controlling interest in the project to an infrastructure fund managed by KKR and closed the project’s $6.8bn non-recourse debt financing. It announced the issuance of the final notice to proceed under the project’s engineering, procurement and construction agreement.
The Port Arthur LNG Phase 1 project is fully permitted and is designed to include two natural gas liquefaction trains, two liquefied natural gas (LNG) storage tanks and associated facilities with a nameplate capacity of approximately 13m tonnes per annum (Mtpa). Total capital expenditures for the Phase 1 project are estimated at $13bn.
The long-term contractable capacity of approximately 10.5 Mtpa is fully subscribed under binding long-term agreements with ConocoPhillips, RWE Supply and Trading, PKN ORLEN S.A., INEOS and ENGIE S.A., all of which became effective upon Sempra Infrastructure’s reaching the FID.
The company is also actively marketing and developing the Phase 2 project, which is expected to have similar offtake capacity to Phase 1.