Sempra Energy delays final investment decision on Port Arthur LNG export project in Texas until 2022

Monday, 10 May 2021
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Sempra Energy, operator of the Cameron LNG export plant in Louisiana and developer the Costa Azul venture in Mexico, has again delayed the final investment decision until 2022 on its third proposed export plant, the Port Arthur LNG project in Texas.

Sempra decided to delay the FID on the Port Arthur facility after originally scheduling the decision for around May 2020 until the market downturn pushed back the timetable and the signing of new customers.

“A final investment decision on Port Arthur LNG will likely move into next year, as we work with partners and customers to further reduce the greenhouse-gas emission profile of the project and evaluate the ongoing impacts of the Covid-19 pandemic on the global economy,” said Sempra.

“We remain confident in our view that the market will need additional supplies of LNG in the coming years and believe Sempra LNG projects are the leading candidates to supply this need,” added the San Diego, California-based company.

The project at Port Arthur in Jefferson County was authorized by the Federal Energy Regulatory Commission in April 2019 and involves the construction of two liquefaction Trains, each with capacity of 6.73 million tonnes per annum, the largest processing Trains among all the projects on the Gulf Coast.

Engineering and planning within the regulatory permitting process are continuing for the project.

Other Port Arthur facilities include two marine berths for LNG carriers with two LNG loading arms and two hybrid arms, condensate loading and truck facilities.

It additionally has permits for a construction and materials loading and unloading dock and three full-containment LNG storage tanks.

The Port Arthur LNG also has an expansion planned to include two additional Trains, each with its own gas treatment facilities and each capable of producing 6.73 MTPA, along with associated utilities and infrastructure.

All four Port Arthur Trains are expected to include one propane and one mixed refrigerant refrigeration GE Frame 7EA compressor turbine.

Each of the Trains will be equipped with an Acid Gas Removal Unit (AGRU) that utilizes an amine treatment process for acid gas removal.

Emissions from the AGRUs will be controlled using thermal oxidizers.

The Port Arthur project signed a fixed-price engineering, procurement and construction contract in March 2020 with US engineers Bechtel.

Sempra had also previously proposed to sell 5 MTPA of Port Arthur LNG to a unit of Saudi Aramco and take a 25 percent investment from the Saudis, while 2 MTPA has also been sold to the Polish Oil & Gas Company.

Last modified on Tuesday, 11 May 2021 10:46
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