Sempra Infrastructure, a subsidiary of U.S. major Sempra, has completed the sale of a 42% indirect, non-controlling interest in its Port Arthur LNG (PALNG) Phase 1 project to investment management company KKR.
The transaction results in Sempra Infrastructure retaining a controlling 28% indirect interest in Phase 1 at the project level and energy major ConocoPhillips owning the remaining 30% interest.
Justin Bird, CEO of Sempra Infrastructure, said: “We remain committed to developing energy infrastructure projects with strong partners to continue growing our portfolio while advancing global decarbonization and energy security.”
James Cunningham, Partner at KKR, noted: “We are pleased to close our investment in this critical energy infrastructure project led by the Sempra Infrastructure team. Port Arthur LNG Phase 1 has continued its strong momentum and is on track to meet its objectives of helping to deliver energy security, economic growth and a near-term supply of reliable and cleaner energy.”
To remind, Sempra Infrastructure reached a positive final investment decision (FID) for Port Arthur LNG Phase 1 in March 2023 and contracted global engineering, procurement and construction firm Bechtel Energy to build the project.
Over 2.8 million hours of work have been completed since construction began this spring, with no lost-time incidents, Sempra claimed, adding that the expected commercial operation dates for Train 1 and Train 2 are 2027 and 2028, respectively.
The Port Arthur LNG Phase 1 is fully permitted and is designed to include two natural gas liquefaction trains, two LNG storage tanks and associated facilities with a nameplate capacity of approximately 13 million tons per annum (mtpa).
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, INEOS and ENGIE, all of which became effective upon reaching FID.