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Sempra’s chairman and CEO, Jeff Martin, said during the company’s first-quarter earnings call on Thursday that the company had recently introduced feed gas from the Gasoducto Rosarito pipeline into the ECA LNG Phase 1 facility and had begun the startup process.
“We continue to expect to produce first LNG next month, and we’re targeting substantial completion this summer,” he said.
“At that point, we’ll begin recognizing LNG revenues with long-term contracted sales and full commercial operations commencing shortly thereafter,” Martin said.
“Port Arthur LNG Phase 1 and Phase 2 construction projects continue to progress on time and on budget,” he added.
Karen Sedgwick, Sempra’s executive VP and CFO, said in November last year that Sempra continues to expect first LNG production at the first phase of its ECA LNG project in the spring of 2026.
Sempra Infrastructure, a unit of Sempra in which the latter is reducing its ownership to 25 percent, 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 it expected mechanical completion and first LNG to occur in 2025, with the timing of commercial operations under the sales and purchase agreements targeted for spring 2026.
In talks for remaining Port Arthur LNG volumes
In March 2023, Sempra Infrastructure took a final investment decision on the first phase of its Port Arthur LNG export project worth about $13 billion.
Bechtel won the $10.5 billion EPC contract, which includes building two trains with a total capacity of about 13 mtpa and two storage tanks with a capacity of 160,000 cbm.
The expected commercial operation dates for train 1 and train 2 are 2027 and 2028, respectively.
In addition, Sempra Infrastructure took FID on the second phase of the Port Arthur LNG project last year.
Including the first 13 mtpa phase, the facility will have a total capacity of about 26 mtpa.
The expected commercial operation dates for Train 3 and Train 4 are 2030 and 2031, respectively.
Justin Bird, EVP of Sempra and CEO of Sempra Infrastructure, discussed the current LNG market and the company’s LNG strategy and projects during the earnings call.
He said that the “fundamentals of the market really matter when there’s stress, and we think this is a key reason why the US and frankly, our LNG portfolio, with access to both the Pacific and Atlantic Coast continue to be well-positioned from a supply perspective.”
“In the short term, these items are translating into positive momentum around our additional volumes at Port Arthur LNG 2, and additional LNG development opportunities around our expansion projects,” he said
“We are actively engaged in discussions for the remaining offtake at PALNG Phase 2, and are constructive on securing our remaining volumes under long-term contracts with prices that will bolster SI’s economic return,” Bird said.
“We, along with our SI partners and our Cameron partners, are very bullish on the prospects of LNG, US LNG, our dual-coast LNG portfolio, and we really think there’s an opportunity to supply the market with the demand that’s going to be there,” he said.