KKR buys indirect, non-controlling interest in Port Arthur LNG Phase 1

Published 12:26 am Thursday, September 14, 2023

Sempra Infrastructure, a subsidiary of Sempra, announced it completed the sale of a 42 percent indirect, non-controlling interest in the Port Arthur LNG Phase 1 project to KKR.

The transaction, which closed in accordance with the terms previously disclosed, results in Sempra Infrastructure retaining a controlling 28 percent indirect interest in Phase 1 at the project level, and ConocoPhillips owning the remaining 30 percent interest.

“The closing of this transaction continues the positive momentum of our world-class Port Arthur LNG facility and highlights Sempra Infrastructure’s ability to access capital to support the growth of its infrastructure business,” said Justin Bird, CEO of Sempra Infrastructure.

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“We remain committed to developing energy infrastructure projects with strong partners to continue growing our portfolio while advancing global decarbonization and energy security.”

James Cunningham, Partner at KKR, said KKR is pleased to close its investment in this critical energy infrastructure project.

“Port Arthur LNG Phase 1 has continued its strong momentum and is on track to meet its objectives of helping to deliver energy security, economic growth and a near-term supply of reliable and cleaner energy,” Cunningham said.

Sempra Infrastructure reached a positive final investment decision for Port Arthur LNG Phase 1 in March and contracted global engineering, procurement and construction firm Bechtel Energy to build the project.

MORE COVERAGE — Sabine Pass, Port Arthur LNG celebrate potential for generational change; $1M in workforce commitment from Sempra & Bechtel

More than 2.8 million hours of work have been completed since construction began this spring, with no lost-time incidents.

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