FERC OKs Sempra’s Port Arthur LNG project

Published 5:21 pm Thursday, April 18, 2019

Special to The News

Sempra Energy on Thursday announced its subsidiary Port Arthur LNG received Federal Energy Regulatory Commission authorization to site, construct and operate its natural gas liquefaction-export facility under development in Jefferson County.

“With today’s FERC order and the commercial momentum of the Port Arthur LNG project, we are one step closer to reaching a final investment decision and delivering low-cost, reliable and clean U.S. natural gas to world markets,” said Carlos Ruiz Sacristán, chairman and CEO of Sempra North American Infrastructure, in a statement issued by the company.

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“Port Arthur LNG should help us achieve our goal to become one of the largest exporters of North American liquefied natural gas. We are grateful to all of our stakeholders for supporting this important infrastructure project that is expected to create thousands of jobs and provide economic benefits for years to come.”

The Port Arthur LNG project is expected to include two liquefaction trains, up to three LNG storage tanks and associated facilities that will enable the export of about 11 million tonnes per annum, or Mtpa, of LNG. The FERC order also approved the construction of the Texas and Louisiana connector pipeline projects that will provide natural gas transportation for the new liquefaction facilities.

The company holds some 3,000 acres in the county along Highway 87, en route to Sabine Pass. The company has said previously the project, estimated at $8-9 billion, would involve some 3,500 engineering and construction workers and perhaps 100 permanent jobs.

Port Arthur LNG and the Polish Oil & Gas Co. signed a definitive 20-year sale-and-purchase agreement for two Mtpa of LNG from the Port Arthur LNG project, subject to certain conditions. Last year, Sempra LNG selected Bechtel as the engineering, procurement, construction and commissioning contractor for the project, subject to reaching a definitive agreement.

Port Arthur LNG received Department of Energy authorization in August 2015 to export domestically produced natural gas to countries with which the U.S. has free trade agreements and has a pending application to export natural gas to non-free trade agreement countries, the company said.

Development of the Port Arthur LNG project is contingent upon obtaining additional customer commitments, completing the required commercial agreements, securing all necessary permits, obtaining financing, incentives and other factors and reaching a final investment decision.

Sempra LNG develops, builds and invests in natural gas liquefaction facilities and is pursuing the development of five strategically located LNG projects in North America with a goal of delivering 45 Mtpa of clean natural gas to the largest world markets, making Sempra Energy one of North America’s largest developers of LNG export facilities.