LNG

US regulators have released the environmental review schedule for Sempra Energy’s Port Arthur LNG Phase II expansion in Texas as part of a project expected to be backed by Saudi Aramco, the largest oil production company.

The expansion would add a total of around 13.5 million tonnes per annum of liquefaction capacity to the project with the largest capacity Trains of all proposed US plants.

The Federal Energy Regulatory Commission said it expected to issue its Environmental Assessment of the expansion on January 15, 2021.

Other federal agencies having jurisdiction over the Port Arthur plant will have until April 15, 2021 to complete their reviews.

Sempra has already said that the site located on nearly 3,000 acres of land along three miles of the west side of the Sabine-Neches waterway is capable of supporting multiple expansions and could become the largest of the US plants.

Sempra’s expansion will include two liquefaction trains, Train 3 and Train 4, which are identical to Train 1 and Train 2 previously approved by the FERC.

Each of the two incremental liquefaction Trains will be capable of producing under optimal conditions 6.73 MTPA.

The addition of Train 3 and Train 4 would double the facility’s output from the current 13.46 MTPA to a total of almost 27 MTPA.

Sempra signed an Interim Project Participation Agreement (IPPA) in January 2020 with Aramco Services Company, a subsidiary of Saudi Aramco, for investment in the four-Train Texas plant.

The IPPA follows a heads of agreement for the potential purchase of 5 MTPA of LNG by the Saudis who are also expected to take a 25 percent equity stake.

The expansion will utilize the same liquefaction Train design as that put forward for the initial plant so that much of the initial engineering design has already been completed.

Experienced US liquefaction plant builders, Bechtel, designed the original two-Train plant and has been retained as the engineering, procurement and construction (EPC) contractor.

Sempra first received its environmental impact statement from regulators in October 2018 for the first phase of the Port Arthur project.

The previous FERC review addressed the potential environmental effects of the construction and operation of the various proposed facilities. as well as the Texas Connector and Louisiana Connector pipelines.

The original filing covered two liquefaction Trains, three LNG storage tanks, each with a capacity of 160,000 cubic metres, a new marine terminal with two LNG vessel berths, an area for support vessels, an LNG transfer system and a truck-loading area. 

The Port Arthur liquefied natural gas export project in Texas proposed by Sempra Energy has formally filed with regulators for authorization for an expansion at the plant which will have the largest liquefaction Trains of any so far constructed in the US.

Sempra Energy, the California-based utility and the newest US liquefied natural gas exporter with its liquefaction plant in Hackberry in Louisiana, said it was consistently working to strengthen its infrastructure to cope with extreme weather conditions in its home state and to supply LNG as clean energy to Asia to replace coal.

Sempra said its role includes taking a leadership position in modernizing North American natural gas pipelines and to increase safety and reliability.

It was also developing a comprehensive wildfire mitigation plan to help prevent electric equipment-related fires in California and to improve the ability of the power grid to meet extreme demand periods.

“In addition, the company expects to play a leadership role in the worldwide shift away from coal toward lower-emissions natural gas through the development of five LNG infrastructure projects in North America that should enable the delivery of LNG to consumers around the world,” stated Sempra in its corporate sustainability report.

The Cameron facility is one of three LNG export plants Sempra is developing in the region, along with Port Arthur LNG in Texas and the Costa Azul plant on the Pacific Coast of Mexico.

The five projects referred to are the expansion of Cameron and Port Arthur.

Sempra expects to become one of the largest US exporters of LNG with targeted volumes of 45 million tonnes per annum.

“Delivering energy with purpose is how we improve the lives of those we serve and is an integral part of who we are,” said Jeffrey W. Martin, Chairman and Chief Executive of Sempra.

“With a strong focus on safety, innovation and environmental stewardship, our company will deliver cleaner energy to the world - with purpose. This focus makes our company more effective and efficient,” he added.

Sempra’s main utilities in California are San Diego Gas & Electric Company and Southern California Gas Co.

San Diego-based Sempra also owns the Texas utility business Oncor and assets in Mexico through its Infraestructura Energetica Nova (IEnova) subsidiary.

“Sustainability will continue to be a key focus as we carry out our mission to be North America's premier energy infrastructure company,” noted Dennis V. Arriola, Executive Vice President.

“We recognize that we have a leadership role to play in the broader world and we're committed to doing the right thing and acting in an ethical and transparent manner in all aspects of our business,” stated Arriola.