Sempra Infrastructure Partners, LP, a 70%-owned subsidiary of energy infrastructure company Sempra, has reached a positive final investment decision (FID) for the development, construction and operation of the Port Arthur LNG Phase 1 project in Southeast Texas with direct access to the Gulf of Mexico.<\/p>\n
Sempra Infrastructure also finalised its joint venture with an affiliate of ConocoPhillips, entered an agreement to sell an indirect, non-controlling interest in the project to an infrastructure fund managed by KKR and closed the project\u2019s $6.8bn non-recourse debt financing. It announced the issuance of the final notice to proceed under the project\u2019s engineering, procurement and construction agreement.<\/p>\n
The Port Arthur LNG Phase 1 project is fully permitted and is designed to include two natural gas liquefaction trains, two liquefied natural gas (LNG) storage tanks and associated facilities with a nameplate capacity of approximately 13m tonnes per annum (Mtpa). Total capital expenditures for the Phase 1 project are estimated at $13bn.<\/p>\n
The long-term contractable capacity of approximately 10.5 Mtpa is fully subscribed under binding long-term agreements with ConocoPhillips, RWE Supply and Trading, PKN ORLEN S.A., INEOS and ENGIE S.A., all of which became effective upon Sempra Infrastructure\u2019s reaching the FID.<\/p>\n
The company is also actively marketing and developing the Phase 2 project, which is expected to have similar offtake capacity to Phase 1.<\/p>\n