Port Arthur LNG phase 2 receives non-FTA export authorisation
Published by Emilie Grant,
Editorial Assistant
Hydrocarbon Engineering,
Sempra Infrastructure, a subsidiary of Sempra, has announced that the US Department of Energy (DOE) issued a permit to the Port Arthur LNG Phase 2 development project to allow the export of up to approximately 13.5 million tpy of US-produced LNG to countries that do not have a free-trade agreement (FTA) with the US.
The non-FTA permit, which is the first issued since the completion of the DOE's most recent public interest study, is a regulatory milestone for the proposed Port Arthur LNG Phase 2 project, which could be a part of helping to narrow the US trade deficit, support the energy security goals of US allies across the globe and strengthen the US economy.
"Today's regulatory approval marks another milestone for the proposed Port Arthur LNG Phase 2 development project, as we make steady progress towards reaching a final investment decision," said Justin Bird, chief executive officer of Sempra Infrastructure. "The project can be a key contributor to further establishing the US as a leader in global energy markets, supporting US trade goals and providing economic opportunity at the local, state and national levels in the US."
The Phase 2 project is competitively positioned and is under active marketing and development. The project received authorisation from the Federal Energy Regulatory Commission in September 2023 and is expected to include two liquefaction trains capable of producing approximately 13 million tpy of LNG, which would increase the total liquefaction capacity of the Port Arthur LNG facility from approximately 13 million tpy for Phase 1, which is currently under construction, to up to approximately 26 million tpa. Future phases are also in the early development stage.
In June 2024, Sempra Infrastructure and a subsidiary of Aramco signed a non-binding heads of agreement contemplating both a long-term LNG offtake agreement and an equity investment in the Port Arthur LNG Phase 2 project. In July 2024, Sempra Infrastructure announced that Bechtel had been selected for a fixed-price engineering, procurement and construction (EPC) contract for the project.
The Port Arthur LNG Phase 1 project is currently under construction and consists of trains 1 and 2, as well as two LNG storage tanks and associated facilities. Construction of the project continues to progress, and the expected commercial operation dates for train 1 and train 2 are 2027 and 2028, respectively.
The development of the Port Arthur LNG Phase 2 project remains subject to a number of risks and uncertainties, including completing the required commercial agreements, securing and/or maintaining all necessary permits, obtaining financing and reaching a final investment decision, among other factors.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/30052025/port-arthur-lng-phase-2-receives-non-fta-export-authorisation/
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