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This new phase will include two natural gas liquefaction trains, one LNG storage tank, and associated facilities with a nameplate capacity of approximately 13 million tonnes per annum (mtpa).
Including the first 13 mtpa phase, for which Sempra Infrastructure took FID in March 2023, the facility will have a total capacity of about 26 mtpa.
$12 billion
Sempra said the incremental project capital expenditures at Phase 2 are estimated at $12 billion, plus an approximate $2 billion payment for shared common facilities, with commercial operations expected in 2030 and 2031 for Trains 3 and 4, respectively.
Funding for Phase 2 is supported by an equity investment led by Blackstone Credit & Insurance, together with an investor consortium including KKR, Apollo-managed funds, and Private Credit at Goldman Sachs Alternatives.
Together these investors have acquired a 49.9 percent minority equity interest for $7 billion, while Sempra Infrastructure has retained a 50.1 percent majority stake in the project.
In addition to securing 100 percent equity financing, Sempra Infrastructure has contracted with compatriot Bechtel, which has received full notice to proceed for the project.
Bechtel’s continued involvement from Phase 1 into Phase 2 is expected to drive “favorable economics and help mitigate execution risk by leveraging efficiencies and learnings across phases.”
Phase 2 is subscribed with long-term offtake under 20-year sales and purchase agreements with strategic partner ConocoPhillips as anchor, and high-quality counterparties EQT and Jera, Sempra said.
Consistent with industry practice, Sempra Infrastructure expects to enter into additional offtake agreements “from time to time to enhance the overall economic value of the project”
Sale of equity stake
Sempra also agreed to sell a 45 percent equity interest in Sempra Infrastructure to KKR and Canada Pension Plan Investment Board (CPP Investments).
Subject to adjustments, the transaction proceeds of $10 billion implies an equity value of $22.2 billion and an enterprise value of $31.7 billion for Sempra Infrastructure, according to Sempra.
Before adjustments, Sempra is expected to receive 47 percent of the cash at close, 41 percent by year-end 2027, and the balance approximately seven years after closing.
This schedule helps Sempra generate “attractive post-closing interest income as it efficiently reinvests proceeds over time in capital expenditures at its US utilities.”
The transaction is expected to close in Q2 – Q3 2026, subject to necessary regulatory and other approvals and closing conditions.
Upon closing, a KKR-led consortium will become the majority owner of Sempra Infrastructure, holding a 65 percent equity stake, while Sempra will retain a 25 percent interest alongside Abu Dhabi Investment Authority’s (ADIA) existing 10 percent stake.
Under the terms of the agreement, Sempra and ADIA will have certain minority rights in Sempra Infrastructure, the company added.
