LNG

Sempra Infrastructure, a subsidiary of California-based utility Sempra, has signed an engineering, procurement and construction contract with US firm Bechtel Energy for Phase II of the Port Arthur LNG export project in Texas.

Entergy Texas, one of the main power companies at the centre of the LNG export sector on the US Gulf Coast, has filed an application with the Public Utility Commission of Texas (PUCT) for approval to construct two natural gas-fired power plants to build up electric resiliency in the state.

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.

Sempra Infrastructure, the owner of the Cameron LNG plant in Louisiana and with other LNG interests in the US and Mexico, has named Tania Ortiz Mena has President of the company.

Sept 22 (LNGJ) - Sempra Infrastructure, the US LNG plant owner and developer and an offshoot of utility company Sempra, said the US Federal Energy Regulatory Commission had approved the permit authorizing the Port Arthur LNG Phase II expansion project proposed for Jefferson County in Texas where the first phase is already proceeding. The latest FERC permit allows for the construction of two additional liquefaction Trains producing up to 13.2 million tonnes per annum of LNG and doubling overall output to around 26.4 MTPA from four Trains of around 6.6 MTPA of capacity.

   The expected start-up dates for the Port Arthur first phase of Train 1 and Train 2 are in 2027 and 2028. “Sempra Infrastructure is committed to investing in infrastructure opportunities that help enable a cleaner and more secure energy future,” said Justin Bird, Chief Executive of Sempra Infrastructure. “The FERC order is a significant step, creating an opportunity to double the amount of secure and reliable US natural gas that Port Arthur LNG can help deliver to global markets,” Bird added.

Sempra, the US utility whose LNG unit Sempra Infrastructure owns Cameron LNG in Louisiana and other projects in Mexico, has taken a positive final investment decision to build the Port Arthur liquefaction and export plant in Texas.

Sempra Infrastructure, a subsidiary of California utility company Sempra, has signed a long-term LNG sale and purchase agreement (SPA) with a central European fuels group that recently acquired the Polish Oil & Gas Company.

The Sempra deal with the Poles is for the supply of 1 million tonnes per annum of LNG cargoes on free-on-board basis for 20 years from the first phase development of the Port Arthur export project in Texas.

The Port Arthur LNG first phase project located in Jefferson County, Texas, has all of its necessary permits and is expected to include two large liquefaction Trains, each with 6.75 MTPA of output, as well as LNG storage tanks and associated facilities for total production of 13.5 MTPA.

A similarly sized Port Arthur LNG second-phase project with another 13.5 MTPA of output is also under active marketing and development.

The SPA with the Polish company, Polski Koncern Naftowy Orlen (PKN Orlen), means that the first phase of the Port Arthur project is now fully subscribed for the limit Sempra has set itself.

In aggregate, the first phase of Port Arthur LNG is now subscribed for 10.5 MTPA under binding long-term agreements.

This leaves Sempra, which also operates the Cameron LNG plant in Louisiana, with room to supply own possible marketing operations.

The full Port Arthur development plan, the Texas facility is aiming for first cargo deliveries in 2027.

“We are excited to partner with PKN Orlen, Central Europe's largest energy group, as they continue to look for long-term, diverse supplies of secure energy sources,” said Justin Bird, Chief Executive of Sempra Infrastructure.

“With the long-term off-take capacity for Phase 1 now sold under binding agreements, we expect to reach a final investment decision later this quarter and commence construction,” added Bird.

Daniel Obajtek, CEO of PKN Orlen, said he was delighted to enter into this long-term agreement with Sempra.

“This is an important step towards strengthening PKN Orlen’s position as a cornerstone of crude and fuel supply security in Central and Eastern Europe,” declared Obajtek.

“Already last year, during a very tense situation on the EU energy market, the US became one of the main suppliers of natural gas to Poland,” he noted.

Sempra Infrastructure has previously entered SPAs with leading European energy and utility companies as well as the US major ConocoPhillips.

They include the German and French utilities RWE and Engie along with European chemicals company INEOS.

US LNG project developer Sempra Infrastructure has entered into a long-term sale and purchase agreement with a unit of German utility RWE AG for volumes from the Port Arthur project in Texas.

Sempra Infrastructure, the US owner of the Cameron LNG plant in Louisiana, and Port Arthur venture in Texas, said it received permits from the US Department of Energy to export US feed-gas from two LNG export plants being developed in Mexico.

Sempra said the permits applied to the Energía Costa Azul project and the Vista Pacifico venture, which war both located on the Mexican Pacific Coast.

“Advancing new infrastructure investments is critical to supporting the energy needs of America's allies,” said Justin Bird, Chief Executive of Sempra Infrastructure.

“These export projects are expected to support efforts across the Indo-Pacific region to diversify energy supplies while transitioning away from coal in power production,’ explained Bird.

“They are also expected to help strengthen US trading relationships, as well as create new jobs and boost the US and Mexico economies,” stated the CEO.

Under the permits granted by the DOE, the Vista Pacifico LNG is authorized to re-export up to 200 billion cubic feet per annum of LNG from US-sourced natural gas from the project under development at Topolobampo in the Mexican state of Sinaloa to any country with which the US does not have an Free Trade Agreement requiring national treatment for trade in natural gas.

Sempra described Vista Pacifico as a mid-scale facility with expected capacity of 3.5 MTPA.

The Vista Pacifico project is contingent upon completing the required commercial agreements, securing all necessary permits, obtaining financing and reaching a final investment decision.

The Sempra LNG unit of California-based utility Sempra Energy is working on the Vista Pacifico project in collaboration with Mexico's Federal Electricity Commission.

The Costa Azul Phase 1 currently under construction received non-FTA export authorization in 2019 and is scheduled to start commercial operations in 2025.

Second phase

The DoE also increased the authorized export volumes of the Costa Azul plant Phase 2 to re-export up to 636 billion cubic feet per annum of US-sourced LNG from project in Ensenada in the state of Baja California to non-FTA nations.

“Both permits are applicable for the period beginning on the date of first commercial re-export through December 2050,” added Sempra.

The proposed Costa Azul Phase 2 is expected to be comprised of two Trains and one LNG storage tank and produce approximately 12 MTPA.

CEO Bird thanked a string of US politicians for the DoE action, including Texas Republic senators Ted Cruz and John Cornyn, as well as the Democrat Senator for West Virginia Joe Manchin and the leadership of the Biden Administration.

Sempra Infrastructure, a subsidiary of California-based Sempra, has signed another long-term sale and purchase agreement, its third in recent weeks, and this time with French utility Engie.