Sempra Infrastructure, a subsidiary of US utility Sempra and whose projects included Cameron LNG in Louisiana, Port Arthur LNG in Texas and Costa Azul LNG in Mexico, has signed a collaboration accord with the state-backed Japan Bank for International Cooperation (JBIC) covering future financial structuring opportunities.
Sempra said that through the memorandum of understanding, Sempra Infrastructure and JBIC aimed to further project structuring to improve the global energy supply chain through LNG and other decarbonization efforts in both the US and Japan.
“Sempra Infrastructure is thrilled to expand its collaboration with JBIC as we look forward to advancing projects that lower the carbon intensity of our energy delivery assets in North America,” said Justin Bird, Chief Executive of Sempra Infrastructure.
“We have built our relationships with customers and the export credit agencies in Japan over the past decade and are excited to expand our relationship with JBIC as we continue developing projects in support of our net-zero business,” Bird explained.
JBIC LNG role
“This collaboration will help us continue advancing our mission of developing energy infrastructure that provides access to safe, secure and affordable energy to our global partners,” the CEO declared.
Sempra noted that it had partnered in various ways with Japanese companies for many years.
“More recently, these partnership efforts are reflected in Sempra Infrastructure's Cameron LNG facility and a recently announced strategic collaboration with a Japanese consortium, which calls for an evaluation of potential enhancements of the energy supply chain through e-natural gas,” said Sempra.
“In addition, the company is developing the Hackberry Carbon Sequestration Project, which contemplates the participation of two Japanese companies. Both development projects are in close geographical proximity to the Cameron LNG facility,” Sempra stated.
As Japan's policy-based financial institution, JBIC has a mission to continue to financially support the creation of business opportunities for Japanese companies and to underpin the Asian nation’s energy security.
Mexico and Texas plants
Sempra Infrastructure in 2023 completed the sale of a stake in the Port Arthur LNG project in Texas to US asset management firm Kohlberg Karvis Roberts (KKR), which is already a stakeholder in the Infrastructure unit.
KKR now holds a 42 percent indirect, non-controlling interest share of the Port Arthur LNG Phase 1 project.
The transaction resulted in Sempra Infrastructure retaining a controlling 28 percent indirect interest in Port Arthur Phase 1 at the project level, and ConocoPhillips owning the remaining 30 percent interest.
The Sempra Infrastructure unit in 2023 reached a positive final investment decision for Port Arthur Phase 1 and contracted US engineering firm Bechtel Energy to build the facility.
Progress also continues at Energía Costa Azul LNG Phase 1 on the Pacific Coast of Mexico where construction at the Mexican export project remains on track to reach commercial operations by the summer of 2025.
The San Diego, California-based company is also pursuing a Phase 2 development project at the Cameron plant in Louisiana.
