Port Arthur LNG Phase 2 Secures Key DOE Export Permit For Non-FTA Countries

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Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE), announced that its Port Arthur LNG Phase 2 project has received a crucial permit from the U.S. Department of Energy (DOE) to export up to 13.5 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) to countries without a free-trade agreement (FTA) with the U.S.

This milestone positions the project for future investment and global energy market expansion.

First Non-FTA Permit Under New DOE Guidelines

The permit is the first of its kind issued following the DOE’s latest public interest study and marks a significant regulatory advancement for the project. It allows Sempra Infrastructure to further develop the Port Arthur LNG Phase 2 terminal, which aims to double the facility’s liquefaction capacity from 13 Mtpa in Phase 1 to 26 Mtpa.

Statements from Leadership

“Today’s regulatory approval marks another milestone for the proposed Port Arthur LNG Phase 2 development project, as we make steady progress towards reaching a final investment decision,” said Justin Bird, chief executive officer of Sempra Infrastructure. “The project can be a key contributor to further establishing the U.S. as a leader in global energy markets, supporting U.S. trade goals and providing economic opportunity at the local, state and national levels in the U.S.”

Project Timeline and Scope

  • Phase 1 (under construction):

    • Includes Trains 1 and 2, two LNG storage tanks, and supporting infrastructure.

    • Train 1 is expected to be operational in 2027, and Train 2 in 2028.

  • Phase 2 (planned):

    • Will add two new liquefaction trains, totaling 13 Mtpa capacity.

    • Brings overall facility capacity to 26 Mtpa.

  • Future phases are already in early-stage development.

Commercial and Strategic Progress

    • In June 2024, Sempra Infrastructure and Aramco signed a non-binding heads of agreement for a long-term LNG offtake deal and potential equity investment in Phase 2.

    • In July 2024, Bechtel was selected for a fixed-price EPC contract for the project.

Remaining Challenges

The project’s final execution remains dependent on:

  • Securing commercial agreements

  • Maintaining permitting

  • Obtaining financing

  • Achieving a final investment decision (FID)

These uncertainties will shape the ultimate timeline and scope of development.

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Source: SEMPRA