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.

French major and leading European LNG sector participant TotalEnergies has signed an agreement to acquire 100 percent of US firm Talos Low Carbon and its carbon-capture and storage projects and has also bought some Texas shale-gas assets.

Technip Energies, the leading European energy and liquefied natural gas project engineers, reported solid profits and its backlog surged as it pledged to strengthen its leadership in 2024 in the low-carbon LNG sector.

Sempra, the US utility company with power and natural gas services centred on California and Texas and LNG developments in the US and Mexico through the Sempra Infrastructure subsidiary, reported a surge in net income for the year and the fourth quarter.

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 Infrastructure, the subsidiary of California-based utility and energy company Sempra and with stakes in LNG plants and projects in the US and Mexico, has 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 Sempra Infrastructure.

Sempra said the sale was complete to KKR on a 42 percent indirect, non-controlling interest basis in the Port Arthur LNG Phase 1 project .

The transaction results in Sempra Infrastructure retaining a controlling 28 percent indirect interest in Phase 1 at the project level, and ConocoPhillips owning the remaining 30 percent interest.

“The closing of this transaction continues the positive momentum of our world-class Port Arthur LNG facility and highlights Sempra Infrastructure's ability to access capital to support the growth of its infrastructure business,” said Justin Bird, Chief Executive of Sempra Infrastructure.

“We remain committed to developing energy infrastructure projects with strong partners to continue growing our portfolio while advancing global decarbonization and energy security,” Bird added.

James Cunningham, a Partner at KKR, said the firm was pleased to proceed with the investment.

“Port Arthur LNG Phase 1 has continued its strong momentum and is on track to meet its objectives of helping to deliver energy security, economic growth and a near-term supply of reliable and cleaner energy,” added Cunningham.

Texas FID

Sempra Infrastructure reached a positive final investment decision for Port Arthur LNG Phase 1 in March 2023 and contracted US engineering firm Bechtel Energy to build the facility.

The company has additionally placed major long-lead time orders with equipment and technology companies Air Products and Baker Hughes.

The $13 billion total estimated capital expenditures for the Port Arthur project are being financed with $6.8Bln of non-recourse project-level debt and $6.2Bln of project-level equity.

The company noted that 100 percent of current contractable capacity for Port Arthur Phase 1 had been secured with long-duration contracts and high-quality counterparties.

“The expected commercial operation dates for Train 1 and Train 2 are 2027 and 2028 respectively,” Sempra said.

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 LNG export plant in Louisiana. 

TotalEnergies and INEOS, the British multinational chemicals group and future importer of US LNG volumes, have signed agreements to realign their respective stakes in their production assets and logistics infrastructure to better reflect the balance between their production and use of ethylene in eastern France.

TotalEnergies said this exchange of interests supported the integration between its petrochemical sites at Feyzin, near Lyon, and Carling in eastern France, while INEOS strengthens its operations at the Lavéra site on the Mediterranean coast near Marseilles.

“The companies’ sites that produce and use ethylene in eastern France are connected by a pipelines and storage network that begins at Lavéra in southeast France and passes through Feyzin to Carling in the northeast,” TotelEnergies explained.

However, TotalEnergies does not itself use its share of production from the Lavéra steam cracker, which is equally (50-50) owned with INEOS and sells it mainly to INEOS.

Stake sale

In order to realign the companies’ production and internal use of ethylene, TotalEnergies will sell its stake in the Lavéra assets to INEOS, in addition to part of its interests in the Eastern France ethylene pipeline and storage network, which TotalEnergies will continue to operate.

While TotalEnergies is a world leader in LNG, INEOS has been building up its LNG interests as imported gas is needed for its chemicals processing.

INEOS recently signed an agreement with the Japanese shipping company Mitsui OSK Lines for two newbuild LNG carriers to be used for the importation of LNG into Germany from the United States.

These agreements are a significant shipping move by INEOS following the long-term Sales and Purchase Agreement signed with US utility Sempra for 1.4 million tonnes per annum of cargoes from the planned Port Arthur LNG export project in Texas.

The UK company has purchased the volumes to ship to its long-term regasification capacity holding at Brunsbüttel, the proposed onshore German LNG import terminal being developed on the Elbe River north of Hamburg.

In the TotalEnergies-INEOS deal TotalEnergies has also reaffirmed the key role of the Feyzin petrochemical platform in France.

Petrochemical platform

“Within TotalEnergies, the company is thus consolidating the key role of the Feyzin petrochemical platform as the integrated supplier of ethylene to the Carling platform,” said the Paris-based company.

The French company added that the agreement with INEOS would have no operational impact on TotalEnergies’ refining and petrochemical sites.

“This operation allows us to strengthen the links between our Feyzin and Carling petrochemical sites, with Feyzin becoming Carling’s integrated ethylene supplier, in line with our strategy to focus on our integrated platforms,” said Jean-Marc Durand, Senior Vice President, TotalEnergies Refining Base Chemicals Europe.

The companies added that the implementation of this project is subject to the prior consultation process of employee representatives and approvals from the relevant authorities.

TC Energy Corp., the North American natural gas and energy pipelines company, has received permission from the US Federal Energy Regulatory Commission to bring a pipeline expansion into service for deliveries to Mexico, including feed gas for liquefied natural gas exports.