Sempra Infrastructure Partners has reached a FID on the second phase of the Port Arthur LNG project in Texas, adding 13 million tonnes per year (tpy) of LNG production capacity, the company announced on Tuesday.
The expansion includes two liquefaction trains, an LNG storage tank and related infrastructure, with commercial operation of the trains expected to begin in 2030 and 2031. The project’s capital expenditure is estimated at USD 12 billion, with an additional USD 2 billion allocated for shared common facilities.
Equity funding for the project is being provided by a consortium led by Blackstone Credit & Insurance, which includes KKR, Apollo-managed funds and Private Credit at Goldman Sachs Alternatives. With its investment, the consortium has acquired a 49.9% stake in the project for USD 7 billion, with Sempra Infrastructure Partners retaining a 50.1% interest.
Bechtel Energy, the EPC contractor for Port Arthur LNG’s first two liquefaction trains, was also awarded the EPC contract for the second phase of construction in July 2024 and has received full notice to proceed. The company’s continued participation in the project is expected to deliver cost efficiencies and reduce execution risk.
Phase 2 is underpinned by long-term offtake agreements with ConocoPhillips as anchor buyer, as well as with buyers including EQT and JERA. Sempra Infrastructure Partners expects to enter into additional offtake agreements.
In parallel, Sempra announced the sale of a 45% stake in Sempra Infrastructure Partners to affiliates of global investment firm KKR and the Canada Pension Plan Investment Board for USD 10 billion. Following the transaction, the KKR-led consortium will own 65% of Sempra Infrastructure Partners, with Sempra holding 25% and the Abu Dhabi Investment Authority 10%. The transaction is expected to close in Q2 2026 or Q3 2026.
Source: theenergyyear.com