Sempra seeks OK to start construction activities for Port Arthur LNG expansion

US LNG exporter Sempra is seeking approval from the Federal Energy Regulatory Commission to start some construction activities for the second phase of the Port Arthur LNG project in Texas, as it continues to work on a final investment decision on the project.

According to a filing with the regulator, Port Arthur LNG Phase II submitted its authorization to construct request (ATC), including supplemental information to its implementation plan on August 14, requesting written notification for authorization to proceed with construction activities for the expansion project.

In a new submittal on August 27, Port Arthur LNG Phase II provided additional information in support of the request for authorization to commence construction activities within the expansion project facility.

The firm said that the activities inlcude mobilization of equipment and work crews and barred tee installation.

Port Arthur LNG Phase II is requesting the Commission to review and approve this request on or before September 12 to allow construction activities to commence.

Sempra recently confirmed that it is still targeting FID on the second Port Arthur LNG phase by the end of this year.

US natural gas producer EQT just signed a long-term deal with Sempra Infrastructure, a unit of Sempra, to buy LNG from the proposed second phase.

Under the new SPA, EQT will buy 2 million tonnes per annum of LNG for 20 years.

This new deal came just a week after ConocoPhillips agreed to buy a total of 80 million tonnes of LNG from the proposed second phase of the Port Arthur LNG project in Texas.

With this deal, ConocoPhillips will buy a total of 180 million tonnes of LNG from both Port Arthur phases.

In addition, Sempra executed a 20-year SPA with Japan’s Jera for 1.5 mtpa of offtake capacity from the second Port Arthur phase.

In March 2023, Sempra Infrastructure took a final investment decision for the first phase of its Port Arthur LNG export project worth about $13 billion.

Bechtel won the $10.5 billion EPC contract, which includes building two trains with a total capacity of about 13 mtpa and two storage tanks with a capacity of 160,000 cbm.

The expected commercial operation dates for train 1 and train 2 are 2027 and 2028, respectively.

Similarly, the Port Arthur LNG Phase 2 development project is expected to include two liquefaction trains capable of producing approximately 13 mtpa of LNG, increasing the total liquefaction capacity of the Port Arthur LNG facility to 26 mtpa.

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