REA Response

Sempra may soon double its $13M LNG project in Port Arthur and bought 38,000 acres of underground pore storage space to support the proposed Titan Carbon Sequestration project. This means more jobs, innovation, and maintaining Texas' status as a global energy leader.

Port Arthur LNG gets greenlight to expand $13B gas plant project

The Houston Chronicle, Sep. 22, 2023

Sempra could choose to double the size of its $13 billion liquefied natural gas project in Port Arthur after receiving clearance last week from the Federal Energy Regulatory Commission. 

The Phase II expansion project would add two production units, doubling the number of units and bringing the project’s capacity to around 27 million metric tons of LNG annually. The project’s first phase, with an expected capacity of 13.5 million metric tons, is under construction and is scheduled to launch in 2027.

Thursday’s regulatory milestone allows Sempra Infrastructure, a subsidiary of the San Diego-based energy conglomerate, to double down on its ambition to develop its Port Arthur LNG facility into a regional energy hub. Earlier this month, Sempra sold a 42% stake in the Port Arthur project’s first phase to KKR, which owns 20% of Sempra Infrastructure. Houston oil company ConocoPhillips also owns a 30% stake in the Port Arthur project.

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Port Arthur LNG is part of a wave of LNG projects hitting the gas-rich Gulf Coast. The gas that Sempra plans to export would serve markets in Europe, which needs to replace Russian gas lost because of the war in Ukraine, and in Asia, where gas is increasingly used to replace coal.

The expansion project is also expected to include an additional LNG storage tank and marine berth. Additionally, Sempra said it bought 38,000 acres of underground pore space to support the proposed Titan Carbon Sequestration project, which is near the Port Arthur LNG facility and could capture the associated emissions.

“The proposed projects by Sempra Infrastructure would create new, high-paying jobs, increase innovative business in the region and continue to bolster the reputation of the State of Texas as a global energy leader,” Sempra Infrastructure CEO Justin Bird said in a statement.