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Karen Sedgwick, Sempra’s executive VP and CFO, provided an update on these two LNG export projects during Sempra’s second-quarter earnings call.
“I’m pleased to note steady progress continues at ECA LNG Phase One. Now that the company is closer to commercial operations, we are tracking several key near-term milestones that are expected to help us meet our financial commitments for next yearm”” she said.
As of July, the project is more than 94 percent complete.
“We expect to reach mechanical completion later this year followed by substantial completion in the spring of 2026. At that time, the facility is expected to begin generating revenues from LNG commissioning cargoes,” Sedwick said.
“We now expect sales to our long-term SPA customers to start shortly thereafter in December of 2026,” she said.
Earlier this year, Sedgwick announced that the LNG projects had started pre-commissioning activities.
Sempra Infrastructure, a unit of Sempra, and France’s TotalEnergies are adding natural gas liquefaction capabilities to the existing ECA LNG regasification terminal, located north of Ensenada in Mexico’s Baja California.
The partners took FID on the development back in 2020, and ECA LNG Phase 1 includes a single-train liquefaction facility with a nameplate capacity of 3.25 mtpa of LNG.
Also, TotalEnergies and Mitsui & Co will offtake a combined 2.5 mtpa of LNG from the facility under 20-year deals.
In August 2024, Sempra Infrastructure announced that its ECA LNG export project had experienced labor and productivity challenges.
Sempra said at the time that mechanical completion and first LNG are expected to occur in 2025, with timing of commercial operations under the sales and purchase agreements targeted for spring 2026.
Port Arthur LNG Phase One over 50 percent complete
Sedwick also said during the earnings call that Sempra and its partners continue work towards delivering Port Arthur LNG Phase One on time and on budget.
In March 2023, Sempra Infrastructure took a final investment decision for the first phase of its Port Arthur LNG export project worth about $13 billion.
Sempra and its partners are targeting commercial operations for train one in 2027, and train two in 2028.
“Current construction is advancing the foundations, steel installation, LNG tank construction, ground piping, and dredging activities, with the overall project now surpassing 50 percent complete,” Sedwick said.
Expansion
“We’re also excited about some of the recent developments at Port Arthur LNG phase two,” Sedwick said.
The development of the proposed second phase would increase the total liquefaction capacity of the facility to about 26 mtpa.
In May, the project received the Department of Energy’s non-FTA export authorization.
At this point in time, Port Arthur LNG phase two has received all major permits necessary for taking FID Sedwick noted.
Phase 2 also made “significant” commercial progress recently, she said.
Last month, Sempra executed a 20-year SPA with Japan’s Jera for 1.5 mtpa of offtake capacity.
“We’re pleased with additional strong offtake interest and remain focused on advancing commercial progress and financing the project. We’re still expecting to take FID in 2025,” Sedwick said.
Sempra’s CEO Jeff Martin also answered a question about FID on Port Arthur Phase later during the call.
He said that the Jera deal “adds a lot of credibility” to the project as Jera is a “world-class buyer of LNG.”
“We’ve been advancing the financing plan, which will also be ported for an FID decision,” he said.
“Think the takeaway from my perspective is solid progress in Q2.. I think the project has momentum. And we continue to think there are a few more remaining work streams we’re tracking to make sure we’re in a position to take FID this year,” Martin said.