Sempra Infrastructure LLC’s Port Arthur LNG Phase 2 expansion project in Jefferson County, Texas, has received permit approval from the Federal Energy Regulatory Commission (FERC).
Sempra Infrastructure said the permit is a major regulatory milestone for the project, which includes the addition of two liquefaction trains, trains 3 and 4, that are capable of producing up to 13 million metric tons per annum (mtpa) of liquefied natural gas (LNG), the company said in a recent news release. The Port Arthur LNG Phase 2 project is under active marketing and development and “could help meet future demand for US LNG supplies expected to serve European, Asian and other global markets as countries look to enhance energy reliability and security, and displace coal in power production”, the company said.
Phase 1 of the Port Arthur LNG project is currently under construction and is designed to include two natural gas liquefaction trains, two LNG storage tanks, and associated facilities. The second phase would increase the total liquefaction capacity of the facility from approximately 13 mtpa to approximately 26 mtpa. The proposed project is also expected to include an additional LNG storage tank and marine berth and would benefit from some of the common facilities currently under construction that were previously approved as part of the Port Arthur LNG Phase 1 permitting process, Sempra Infrastructure said.
“Sempra Infrastructure is committed to investing in infrastructure opportunities that help enable a cleaner and more secure energy future”, Sempra Infrastructure CEO Justin Bird said. “Today’s FERC order is a significant step in our ability to advance the global energy transition, creating an opportunity to double the amount of secure and reliable U.S. natural gas that Port Arthur LNG can help deliver to global markets”.
Sempra Infrastructure said it continues to evaluate opportunities to develop the entirety of the Port Arthur site while also exploring potential projects to reduce the carbon intensity of its LNG, aiming to position Port Arthur as a flagship hub for the energy transition. The company is leveraging the integrated capabilities of its business segments to develop the proposed Port Arthur Pipeline Texas Connector project and the proposed Post Arthur Pipeline Louisiana Connector project, and develop new gas storage facilities, all of which would serve the Port Arthur LNG facility.
To further the advancement of the Port Arthur Energy Hub, the company recently acquired 38,000 acres of pore space and relevant surface rights to support the proposed Titan Carbon Sequestration project, which is near the Port Arthur LNG facility. The project targets capturing carbon from the Port Arthur LNG Phase 1 and 2 projects, and has the potential to unlock other net-zero energy infrastructure opportunities, according to the release.
“The value proposition of the proposed Port Arthur Energy Hub goes beyond monetary investment in the region”, said Bird. “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”.
Earlier in the month, Sempra Infrastructure completed the sale of a 42 percent indirect, non-controlling interest in its Port Arthur LNG Phase 1 project to investment firm KKR & Co. Inc.
The transaction results in Sempra Infrastructure retaining a controlling 28 percent indirect interest in Phase 1 at the project level and ConocoPhillips Co. owning the remaining 30 percent, Sempra Infrastructure and KKR said in separate news releases.
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