Sempra sees potential for 90 mtpa LNG export portfolio

“Over the long run, our strategy is increasingly focused on the expansion of our dual basin LNG strategy, which could over time represent up to 90 million tonnes per annum in total LNG exports while significantly increasing the scope and scale of our business,” Bird said during Sempra’s earnings call on Tuesday.

He said the timing and ultimate ownership stakes in these projects will depend on market demand, which the company believes will remain “robust” through 2040.

“For context, LNG demand has grown 6 percent per annum over the last 25 years and going forward, we estimate that global demand could grow by up to another 350 million tonnes per annum through 2050,” he said.

Cameron LNG nears 900th cargo

Bird said Sempra Infrastructure is making “substantial” progress on its dual basin LNG strategy through the construction of ECA LNG Phase 1, Port Arthur LNG Phase 1, and the active development of Port Arthur LNG Phase 2.

“And when ECA and Port Arthur LNG Phase 1 are up and running, we’ll have the ability to deliver natural gas from the Permian and Haynesville basins into our terminals and dispatch LNG into both the Pacific and Atlantic energy markets,” he said.

Sempra’s Cameron LNG currently operates the existing three-train 12 mtpa liquefaction facility.

The company and its partners are also planning an expansion project, which includes building the fourth train with a capacity of about 6 mtpa.

In late 2023, Cameron LNG shipped its 700th cargo since its launch in 2019.

“At Cameron, which is now in its fourth year of full production, the team continues to optimize its operations with the plant reaching a 98 percent reliability rate in 2024,” Bird said.

“During 2024, Cameron loaded 193 cargoes and has now reached 895 cargoes since production began in May 2019,” he said.

ECA LNG export project 90 percent complete

Sempra Infrastructure and France’s TotalEnergies are adding natural gas liquefaction capabilities to the existing ECA LNG regasification terminal, located north of Ensenada in Mecixo’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 Energia Costa Azul 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.

“At ECA LNG Phase 1, we’re excited that the project has reached 90 percent completion including engineering, procurement, and construction progress,” Bird said.

“Current work is now focused on pipe testing and insulation, electrical instrumentation, and pre-commissioning activities,” he said.

“We expect to be on time and on budget in the spring of 2026,” Bird said.

He also said that Sempra Infrastructure reached COD (commercial operations date) on its GRO pipeline supporting natural gas supply into ECA LNG.

Port Arthur LNG construction progressing

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.

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

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

Besides a 20-year LNG SPA for 5 mtpa of LNG, US energy giant ConocoPhillips is a shareholder in the project with a 30 percent stake.

Sempra Infrastructure also 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 has a controlling 28 percent indirect interest in Phase 1 at the project level.

Bird said construction on Port Arthur LNG Phase 1 with EPC contractor Bechtel “remains on time and on budget.”

“We have 3,600 workers on-site, are building out the steel framework for the trains, tank construction, above-ground and underground piping, marine berth dredging, and have commenced major equipment setting.

“We continue to target commercial operations for Train 1 and Train 2 in 2027 and 2028 respectively,” he said.

Port Arthur LNG expanion FID in 2025

Besides the first phase, Sempra Infrastructure is planning to build the second Port Arthur LNG phase, which would increase the facility’s total liquefaction capacity to about 26 mtpa.

The second phase is already anchored by a non-binding HOA for LNG offtake and a proposed equity investment with a subsidiary of Saudi Aramco, as well as a fixed-price engineering, procurement, and construction contract with Bechtel.

In November 2024, Bird said the company expects to secure DOE’s non-FTA export approval for the second phase of its Port Arthur LNG export project in the first half of 2025.

Sempra Infrastructure previously won approval from the US FERC for the proposed Phase 2 project, and it also secured the FTA approval from the DOE.

DOE still needs to approve Sempra Infrastructure’s non-FTA application for the project.

Last month, President Donald Trump lifted a moratorium on non-FTA LNG export permits by the former Biden administration.

Trump issued the executive order, which was widely expected, just hours after officially taking over his second four-year term as the president.

“We have well over 5 mtpa of interest for the remaining offtake and are confident in our ability to meet our customers’ needs,” Bird said, discussing the second Port Artur LNG phase.

“Many of our stakeholders are eager for this project to succeed, including ConocoPhillips, as they mentioned in their recent earnings call,” he said.

“Given recent commercial discussions for additional demand, the momentum of project development, and our continued expectation to receive the DOE non-FTA permit, we’re excited to announce we’re targeting a final investment decision later this year pending the execution of definitive commercial agreements, obtaining permits and securing financing among other factors,” he said.