Sempra eyes two LNG expansion FIDs in 2024

US LNG exporter Sempra Infrastructure, a unit of Sempra, expects to take final investment decisions next year to expand two LNG export plants.

In March this year, Sempra Infrastructure and its partners TotalEnergies, Mitsui & Co, and Japan LNG Investment, a company held by Mitsubishi Corp and NYK, secured approval from the US FERC for the revised expansion plans for the Cameron LNG export plant in Lousiana.

Cameron LNG operates the existing three-train 12 mtpa liquefaction facility and the expansion project includes building the fourth train with a capacity of about 6.75 mtpa.

Cameron LNG previously awarded two front-end engineering design (FEED) contracts to Bechtel and a joint venture between JGC America and Zachry Industrial.

Bechtel to perform work

Justin Bird, CEO of Sempra infrastructure, said during Sempra’s second-quarter earnings call last week that the partners have selected Bechtel for the Cameron Phase 2.

“We are at a stage in the competitive feed process where we have selected Bechtel to move forward to complete the remaining work,” he said.

“We are aligned with our partners to invest additional time upfront to reduce construction risks and project costs,” Bird said.

According to the CEO, the company expects this process to continue through the fall “positioning us to take FID next year after satisfactorily finalizing the additional feed work securing project financing and any required regulatory approvals.”

Port Arthur LNG expansion FID

Bird said that the selection of Bechtel is a “significant milestone” and the company is implementing a strategy similar to what Sempra Infrastructure did at its Port Arthur LNG export project in Texas to reduce overall costs and risk.

In March, Sempra Infrastructure took a final investment decision for the first phase of its Port Arthur LNG export project worth about $13 billion.

Bechtel is also building this LNG export plant with a total capacity of about 13 mtpa.

Bird said during the call that Sempra Infrastructure is working to finalize its project level ownership stake in Port Arthur LNG Phase 1 at 28 percent.

“This is within the previously shared target range of 20 percent to 30 percent, and we expect the transaction with KKR to close in the third quarter,” he said.

In addition to the first phase, Sempra Infrastructure is also working to double the capacity of the plant as part of the project’s second phase.

Bird said that Sempra Infrastructure is “very optimistic” regarding the Port Arthur Phase 2.

“We continue to advance commercial discussions with potential customers, importantly many of whom are also interested in project equity,” he said.

“And at the same time, we’re advancing engineering construction with Bechtel, regulatory, and financing,” the CEO sad.

Bird said that the company has made “significant progress” on its LNG strategy and “are very bullish on both Port Arthur Phase 2 and Cameron Phase 2 moving forward next year.”

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