FERC granted Port Arthur LNG Phase II’s request to modify the design of the Port Arthur liquefaction expansion project following its August 14 filing.
Specifically, this approval is for the design modification for the addition of a nitrogen rejection unit (NRU).
FERC staff analyzed the variance design documentation provided in the filing against the original application design documentation.
“Based upon this review, FERC staff concluded that the proposed modification provides an equal or
greater level of environmental protection than the application design,” it said.
FERC said the NRU would lower the nitrogen content in the feed gas to improve overall operational efficiency.
The regulator reminded that Port Arthur must comply with all applicable terms and conditions of the above referenced order, as well as procedures stipulated in its previous filings.
“Please note that this approval does not grant Port Arthur the authority to commence construction of the proposed modification; rather, this is an approval of the modification’s concepts,” it said.
“FERC staff would require completed final design documents, reflecting the above referenced changes, for review and approval, before authorization for construction of the proposed modification will be given,” the regulator said.
Construction activities
Sempra also received approval from the regulator to start some construction activities for the second phase of the Port Arthur LNG project, as it continues to work on a final investment decision on the project.
FERC said in a filing last week that it has granted Port Arthur’s August 27 request to start construction activities of the expansion Project by mobilization of equipment and work crews in Jefferson County, Texas.
The regulator also granted Port Arthur’s request to install the barred tee.
Sempra recently confirmed that it is still targeting FID on the second Port Arthur LNG phase by the end of this year.
Last month, US natural gas producer EQT 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.
