Port Arthur LNG Phase 2 earns regulatory authorization; “would create new, high-paying jobs”

Published 12:18 am Friday, September 22, 2023

Sempra Infrastructure, a subsidiary of Sempra, announced the Federal Energy Regulatory Commission approved the permit authorizing the Port Arthur LNG Phase 2 expansion project under development at Port Arthur LNG in Port Arthur.

The permit is a major regulatory milestone for a proposed Phase 2 project, including the addition of two liquefaction trains (trains 3 and 4) capable of producing up to 13 million tonnes per annum of liquefied natural gas, company officials said.

CEO Justin Bird said Sempra Infrastructure is committed to investing in infrastructure opportunities that help enable a cleaner and more secure energy.

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This week’s order, he said, is a significant step in Sempra’s ability to advance the global energy transition, “creating an opportunity to double the amount of secure and reliable U.S. natural gas that Port Arthur LNG can help deliver to global markets.”

Phase 1 is under construction, and the development of the proposed Phase 2 project could increase the total liquefaction capacity of the facility from approximately 13 million tonnes per annum to approximately 26 million.

The proposed project is also expected to include an additional LNG storage tank and marine berth and would benefit from some of the common facilities under construction that were approved as part of the Port Arthur LNG Phase 1 permitting process.

Sempra Infrastructure is evaluating opportunities to develop the entirety of the Port Arthur site while exploring projects to reduce the carbon intensity of its LNG, positioning Port Arthur as a flagship hub for the energy transition.

The company is leveraging the integrated capabilities of its business segments to develop the proposed Port Arthur Pipeline Texas Connector project, the proposed Post Arthur Pipeline Louisiana Connector project and develop new gas storage facilities, all of which would serve the Port Arthur LNG facility.

To further the advancement of the Port Arthur Energy Hub, the company acquired 38,000 acres of pore space and relevant surface rights to support the proposed Titan Carbon Sequestration project, which is proximal in location to the Port Arthur LNG facility.

The project targets capturing carbon from Sempra Infrastructure’s Port Arthur LNG Phase 1 and 2 projects that are under development and has the potential to unlock other net-zero energy infrastructure opportunities.

The potential comprehensive development would enhance the total value of Port Arthur project and deliver significant value for the local community, opening up substantial avenues for economic growth opportunities for the region, company officials say.

“The value proposition of the proposed Port Arthur Energy Hub goes beyond monetary investment in the region,” Bird said. “The proposed projects by Sempra Infrastructure would create new, high-paying jobs, increase innovative business in the region and continue to bolster the reputation of the State of Texas as a global energy leader.”

The Port Arthur LNG Phase 2 project is under active marketing and development. The project could help meet future demand for U.S. LNG supplies expected to serve European, Asian and other global markets as countries look to enhance energy reliability and security, and displace coal in power production.

The Port Arthur LNG Phase 1 project is under construction and is designed to include two natural gas liquefaction trains, two LNG storage tanks and associated facilities.