Sempra Infrastructure Partners, which is 70% owned by Sempra, has announced a positive final investment decision (FID) for Phase 1 of the Port Arthur LNG export terminal project in Jefferson County, Texas, US.
Expected to entail an investment of $13bn, the Port Arthur LNG Phase 1 project will have a capacity of 13.5 million tonnes per annum (mtpa).
The project comprises two natural gas liquefaction trains, two LNG storage tanks and associated facilities.
Furthermore, an infrastructure fund managed by investment firm KKR has agreed to acquire a 25% to 49% indirect stake in the natural gas liquefication and export terminal project.
Upon completion of the KKR deal, Sempra Infrastructure Partners would target a minority stake of 20% to 30% in the project.
Sempra chairman and CEO Jeffrey Martin said: “With strong customers, top-tier equity sponsors in ConocoPhillips and KKR, and a world-class contractor in Bechtel, this project has the potential to become one of America’s most significant energy infrastructure investments over time while creating jobs and spurring continued economic growth across Texas and the Gulf Coast region.”
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Sempra Infrastructure Partners also finalised its joint venture (JV) with the US oil producer ConocoPhillips.
In November 2022, ConocoPhillips said it would acquire a 30% stake in the Port Arthur Phase 1 project through the JV.
ConocoPhillips will also purchase 5mtpa of LNG produced by the project in its first phase.
The company will also have the option to purchase an additional stake and certain LNG offtake in the Port Arthur LNG Phase II project.