US LNG firm Sempra Infrastructure, a unit of Sempra, is planning to take a final investment decision for the first phase of its proposed Port Arthur liquefaction project in Texas in the first quarter of 2023.
Sempra revealed this in its third-quarter results report on Thursday.
“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,” Jeffrey Martin, CEO of Sempra, said in the report.
This follows the company’s recent announcement that it has finalized its fixed-price engineering, procurement and construction (EPC) contract for Port Arthur LNG Phase 1 with Bechtel.
The two firms amended and restated the fixed-price contract which now is worth about $10.5 billion.
The liquefaction project would consist of two liquefaction trains each capable of producing up to 6.73 mtpa. Sempra Infrastructure also plans a similarly sized second phase of the project.
Also, the first phase of the project includes three LNG storage tanks with a capacity of 160,000 cubic meters and a marine facility consisting of two berths for LNG vessels with a capacity of up to 266,000 cbm.
Earlier this year, US energy giant ConocoPhillips signed a preliminary deal with Sempra Infrastructure to buy a 30 percent direct equity holding in the project and an LNG offtake equivalent to about 5 mtpa.
Including this deal with ConocoPhillips, these HOAs total 9.65 mtpa to 11.65 mtpa of LNG from the first phase of the development, according to Sempra Infrastructure.
The firm also recently secured a 50-month extension from US energy regulators to build the Port Arthur liquefaction project.
Cameron LNG expansion
Besides the Port Arthur project, Sempra is also moving forward with plans for the Cameron LNG expansion project.
Cameron LNG operates the existing three-train 12 mtpa liquefaction facility. The expansion includes a new train with a planned production capacity of approximately 6.75 mtpa.
It also includes improved production from the first three trains.
Sempra Infrastructure has a 50.2 percent stake in Cameron LNG while the other partners are Mitsui & Co., Mitsubishi Corporation, TotalEnergies, and NYK Line.
Earlier this year, Sempra said that it expects to take a final investment decision to expand the Cameron LNG plant in 2023.
In April, Sempra Infrastructure entered into a heads of agreement with its partners in Cameron LNG.
Additionally, Cameron LNG awarded two front-end engineering design (FEED) contracts to Bechtel and a joint venture between JGC America and Zachry Industrial. UK-based Wood performs owner’s engineering services.
“The company continues to advance its Cameron LNG Phase 2 project under development and anticipates FID on Train 4 after the front-end engineering and design process is completed, which is currently targeted for the summer of 2023,” Sempra said in the third-quarter report.