Sempra, KKR wrap up Port Arthur LNG stake sale

US LNG player Sempra Infrastructure, a unit of Sempra, has completed the sale of a 42 percent non-controlling interest in its Port Arthur LNG Phase 1 project to compatriot private equity firm KKR.

Sempra Infrastructure took a final investment decision on March 20 for the first phase of its Port Arthur LNG export project worth about $13 billion.

The first phase of the Port Arthur LNG project will have two trains with a total capacity of about 13 million tonnes per annum and two storage tanks with a capacity of 160,000 cbm.

In March, Sempra Infrastructure said that it will sell an indirect, non-controlling interest in the project to an infrastructure fund managed by KKR.

Also, the firm said that KKR will acquire a 25 percent to 49 percent stake.

Sempra Infrastructure announced the completion of the 49 percent stake sale in a statement issued on Tuesday.

The transaction, which closed in accordance with the terms previously disclosed, results in Sempra Infrastructure retaining a controlling 28 percent indirect interest in Phase 1 at the project level, and ConocoPhillips owning the remaining 30 percent interest, the company said.

“The closing of this transaction continues the positive momentum of our world-class Port Arthur LNG facility and highlights Sempra Infrastructure’s ability to access capital to support the growth of its infrastructure business,” Justin Bird, CEO of Sempra Infrastructure, said.

Sempra, KKR wrap up Port Arthur LNG stake sale
Port Arthur LNG site (Image: Port Arthur LNG)

Construction moving forward

US engineering and construction giant Bechtel won the EPC contract for the first phase of the project.

Over 2.8 million hours of work have been completed since construction began this spring, with no lost-time incidents, Sempra Infrastructure said in the statement.

Sempra Infrastructure’s unit Port Arthur LNG said in a recent monthly status report filed with FERC that construction-related activities during August included site clearing, grubbing, stripping, soil stabilization activities, dredging, piling, and maintenance of ECD’s.

During September, Bechtel will continue with site preparation, soil stabilization, and pile driving activities, it said.

The first phase of the project is fully subscribed with 10.5 Mtpa under binding long-term agreements.

Sempra Infrastructure previously entered into long-term agreements with each of ConocoPhillips, Ineos, Engie, RWE, and PKN Orlen.

The expected commercial operation dates for Train 1 and Train 2 are 2027 and 2028, respectively.

Most Popular

Venture Global’s Plaquemines LNG to commission fourth tank

US LNG exporter Venture Global LNG has received approval from the US FERC to commission the fourth storage tank with LNG at its Plaquemines plant in Louisiana.

Worley gets full notice to proceed on first phase of CP2 LNG project

Australian engineering firm Worley has received a full notice to proceed from US LNG exporter Venture Global LNG under its reimbursable EPC contract for the first phase of the CP2 LNG project in Louisiana.

US FERC issues final SEIS for NextDecade’s Rio Grande LNG project

The US Federal Energy Regulatory Commission (FERC) has released a final supplemental environmental impact statement for NextDecade's Rio Grande LNG facility and the accompanying pipeline in Texas. FERC continues to conclude that approval of the projects would result in "less than significant impacts."

More News Like This

Sempra Infrastructure, Jera seal 20-year LNG SPA

US LNG exporter Sempra Infrastructure, a unit of Sempra, has signed a 20-year LNG supply contract with Japan's Jera for volumes from the Port Arthur LNG Phase 2 development project in Texas.

Cameron LNG hits new milestone

Sempra Infrastructure, a unit of Sempra, and its partners have shipped the 1,000th cargo of liquefied natural gas from the Cameron LNG export plant in Louisiana since 2019.

Japan’s Jera seals US LNG supply deals

Japan's power firm and LNG trader Jera has signed 20-year agreements to buy up to 5.5 million tonnes per year of LNG from the United States. The deals include an SPA with Commonwealth LNG and the previously announced SPA with NextDecade, as well as heads of agreements with Sempra Infrastructure and Cheniere.

Sempra advances Port Arthur LNG construction

US LNG exporter Sempra and compatriot Bechtel continue to make progress with construction work on the first phase of the Port Arthur LNG export terminal in Texas.