Sempra Infrastructure previously won approval from the US FERC for the proposed Phase 2 project, and it also secured the FTA approval from the DOE.
DOE still needs to approve Sempra Infrastructure’s non-FTA application for the project.
The Biden administration said in January it will pause pending decisions on exports of LNG to non-FTA countries until DOE can update the underlying analyses for authorizations.
“We’re waiting for our DOE non-FTA export permit, and we expect that to be resolved in the first half of next year,” Justin Bird, CEO of Sempra infrastructure, said during Sempra’s third-quarter earnings call on Wednesday.
“We continue to identify sources of financing for the project and advance the other key milestones to put us in a position to take a final investment decision,” he said.
In July, Sempra Infrastructure and compatriot engineering and construction firm Bechtel finalized a fixed-price engineering, procurement, and construction (EPC) contract for the second phase of the Port Arthur LNG export project.
Bechtel is already building the first phase of the Port Arthur LNG export terminal with a capacity of some 13 mtpa under an EPC deal worth about $10.5 billion.
The development of the proposed second phase would increase the total liquefaction capacity of the facility to about 26 mtpa.
Increased interest
In June, Saudi Arabia’s energy behemoth Aramco signed a heads of agreement with Sempra to buy 5 mtpa of LNG for 20 years from the Phase 2.
The HoA further contemplates Aramco’s 25 project participation in the project-level equity.
Bird said in the previous quarterly call that commercial discussions are progressing “very well” for the sale of remaining offtake volumes from the project.
“As noted on our Q2 call, we saw an increased interest in Port Arthur 2, and I’m happy to say that interest has further increased since the call,” he said during the third-quarter call.
Bird said, “momentum continues to build with commercial discussions for offtake, and project equity is ongoing, and I think we’re seeing better terms.”
Ahead of Cameron LNG expansion
Sempra’s finance chief Karen Sedgwick noted during the call that Sempra is now expecting Port Arthur Phase 2 development timeline to “move ahead of the Cameron expansion.”
“The timing of an FID decision for Cameron expansion is uncertain at this point. We continue to work with our partners on the optimal timing for expansion,” she said.
“As we’ve been in the past, we’ll be very disciplined in our efforts to secure quality returns and mitigate risk to capital before making any investment decision,” Sedwick said.
Bird said in February this year that Sempra Infrastructure expects to take a final investment decision to expand its Cameron LNG plant in the first half of 2025.
In March last year, Sempra Infrastructure and its partners TotalEnergies, Mitsui & Co, and Japan LNG Investment, a company held by Mitsubishi Corp and NYK, secured approval from the US FERC for the revised expansion plans for the Cameron LNG export plant in Lousiana.
Cameron LNG operates the existing three-train 12 mtpa liquefaction facility and the expansion project includes building the fourth train with a capacity of about 6 mtpa.
Sedwick said during the call that Cameron LNG continues to “perform well.”
“Year-to-date, the facility has already loaded 140 cargoes, and lifetime to date, Cameron has now surpassed 840 cargoes,” she said.
“Notably, the current 2024 production level exceeds the average annual run rate implied since COD (commercial operations date),” Sedgwick said.
