US LNG operator and energy firm Sempra said it would likely postpone a final investment decision on its planned Port Arthur liquefaction project in Texas for the second time.
Sempra said in May 2020 it had delayed the decision on the LNG export development to 2021 due to the market conditions created by the Covid-19 pandemic.
The firm continues to work with its partners to reduce Porth Arthur LNG’s greenhouse gas emissions profile and to improve the project’s position in the market, Sempra’s finance chief Trevor Mihalik told analysts during the company’s quarterly earnings conference call on Wednesday.
“At this time, given this work and the continued impacts of the pandemic on the global energy markets, it is more likely that the final investment decision at Port Arthur will move to next year,” Mihalik said.
To remind, Sempra and Bechtel signed the final EPC deal for the LNG export project in March last year.
The first phase of Port Arthur LNG includes a two-train plant with about 13 mtpa capacity and up to three storage tanks.
Sempra has a firm 2 mtpa deal for the project signed with Poland’s PGNiG in December 2018.
It also has a preliminary deal with Saudi Aramco signed in May 2019 under which the latter would take a 25 percent stake in the LNG project.