Sempra set to approve Texas Port Arthur LNG export plant in Q1 2023
(Reuters) - California energy company Sempra Energy said Thursday that its Sempra Infrastructure unit planned to greenlight the first phase of its proposed Port Arthur LNG export plant in Texas during the first quarter of 2023.
"We have made significant progress on advancing development at Port Arthur LNG, where we now expect to take a final investment decision on Phase 1 in the first quarter of next year," Sempra Chief Executive Jeffrey Martin said in a press release on the company's third quarter earnings.
If approved, the roughly $10.5 B plant could enter service around 2027. The two liquefaction trains at the proposed plant could produce a total of around 13 MMtpy of LNG.
Sempra said it was also actively marketing LNG from a proposed 6-13 MMtpy second phase at Port Arthur.
The Wall Street Journal said Sempra was in talks to sign a 20-year non-binding agreement to provide U.S. pipeline company Williams Cos Inc with 3 MMtpy of LNG out of Port Arthur, according to people familiar with the matter.
"As you look forward to (Port Arthur) Phase 2 ... it reflects the fact that we've got volumes currently committed at Cameron that could be moved over to support Phase 2, and it also reflects roughly 3 (MMtpy) of capacity that's in advanced negotiations currently," Sempra CEO Marin said on a call in answer to an analyst question about the Williams deal.
Sempra is part of a joint venture that owns the operating 15-MTPA Cameron LNG export plant in Louisiana.
Officials at Williams were not immediately available to talk about the Sempra deal.
In addition, to the Port Arthur plant, Sempra is building a 3-MMtpy LNG export plant at its Costa Azul LNG import plant in Mexico and is developing a second 6-MMtpy phase at Cameron, a second 12-MMtpy phase at Costa Azul and a new 2-MMtpy export plant at Vista Pacifico in Mexico.
(Reporting by Arunima Kumar in Bengaluru and Scott DiSavino in New York; Editing by Krishna Chandra Eluri and Cynthia Osterman)
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