Today, Sempra Infrastructure announced that Port Arthur LNG Phase 2 and Bechtel Energy (Bechtel) have signed a fixed-price engineering, procurement, and construction (EPC) contract for the Port Arthur LNG Phase 2 project in Port Arthur, Texas. Under the EPC contract, Bechtel will handle detailed engineering, procurement, construction, commissioning, startup, performance testing, and operator training activities for the project. The agreement also includes provisions for pre-final investment decision work to ensure project cost and schedule certainty.
The proposed Port Arthur LNG Phase 2 project is actively being marketed and developed, having received authorization from the Federal Energy Regulatory Commission in September 2023. The project is expected to feature two liquefaction trains with a combined capacity of approximately 13 million tonnes per annum (Mtpa) of LNG, which would double the facility’s total liquefaction capacity to up to 26 Mtpa.
Port Arthur LNG Phase 1, currently under construction, includes trains 1 and 2, as well as two LNG storage tanks and associated facilities. The construction is progressing, with commercial operation dates for train 1 and train 2 expected in 2027 and 2028, respectively.
In June, Sempra Infrastructure and a subsidiary of Aramco signed a non-binding heads of agreement for the purchase of 5 Mtpa of LNG and a 25% equity investment in the Port Arthur LNG Phase 2 project. Additionally, in December 2022, Port Arthur LNG Phase 2 and INEOS entered into a non-binding agreement for an offtake capacity of 0.2 Mtpa from the project.
The development of the Port Arthur LNG Phase 2 project remains subject to several risks and uncertainties, including the completion of required commercial agreements, securing and maintaining necessary permits, obtaining financing, and reaching a final investment decision.
