The US Department of Energy (DOE) has granted authorisation for the export of liquefied natural gas (LNG) from Sempra’s proposed Port Arthur LNG Phase 2 project to countries without a free trade agreement (FTA) with the US.
The Port Arthur LNG Phase 2 project is being developed by Sempra Infrastructure, a subsidiary of Sempra, at its Port Arthur site in Texas.
The approval permits the export of up to 13.5 million tonnes per annum (mtpa) of US-produced LNG.
This marks a regulatory milestone for the facility’s second phase, which is currently under active marketing and development.
Sempra Infrastructure CEO Justin Bird said: “Today’s regulatory approval marks another milestone for the proposed Port Arthur LNG Phase 2 development project, as we make steady progress towards reaching a final investment decision.
“The project can be a key contributor to further establishing the US as a leader in global energy markets, supporting US trade goals and providing economic opportunity at the local, state and national levels in the US.”
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By GlobalDataOnce operational, Port Arthur LNG Phase 2, is expected to export 1.91 billion cubic feet per day.
This expansion would double the total capacity of the Port Arthur LNG facility to approximately 26mtpa, with additional phases in early development.
In June 2024, Sempra Infrastructure and a subsidiary of Aramco entered into a preliminary agreement, which includes a potential long-term LNG offtake agreement and an equity investment in the Port Arthur LNG Phase 2 project.
The following month, Sempra Infrastructure selected Bechtel for a fixed-price engineering, procurement, and construction contract for the project.
The first phase of the Port Arthur LNG project, presently under construction, comprises two trains, two LNG storage tanks, and related facilities.
With construction advancing, the anticipated commercial operation dates for the first and second trains are 2027 and 2028, respectively.
It is expected to feature two liquefaction trains with a combined capacity of around 13mtpa of LNG.
However, the development of the Port Arthur LNG Phase 2 project is subject to various risks and uncertainties.
These include finalising commercial agreements, maintaining necessary permits, securing financing, and making a final investment decision.
US Secretary of Energy Chris Wright said: “Port Arthur LNG Phase II marks a significant expansion of the first phase already under construction – turning more of the liquid gold beneath our feet into energy security for the American people.
“With President Trump’s leadership, the Energy Department is restoring America’s role as the world’s most reliable energy supplier.”
