Sempra Infrastructure, a subsidiary of Sempra, signed a fixed-price engineering, procurement, and construction (EPC) contract with Bechtel Energy for the Port Arthur LNG Phase 2 project under development in Port Arthur, Tex.
As part of the contract, Bechtel will perform the detailed engineering, procurement, construction, commissioning, startup, performance testing, and operator training activities for the project. The scope also includes the ability to conduct pre-final investment decision work to better assure project cost and schedule certainty, Sempra said in a release July 18.
The proposed Port Arthur LNG Phase 2 project is under active marketing and development. The project received authorization from the Federal Energy Regulatory Commission in September 2023 and is expected to include two liquefaction trains capable of producing 13 million tonnes/year (tpy) of LNG, which would increase the total liquefaction capacity of the plant to up to 26 million tpy from about 13 million tpy.
The Port Arthur LNG Phase 1 project is currently under construction and consists of trains 1 and 2, as well as two LNG storage tanks and associated infrastructure. Commercial operations for trains 1 and 2 are expected in 2027 and 2028, respectively.
In June, Sempra Infrastructure and a subsidiary of Aramco signed a non-binding heads of agreement contemplating the purchase of 5 million tpy of LNG and a 25% equity investment in the Port Arthur LNG Phase 2 project. In December 2022, Port Arthur LNG Phase 2 and INEOS also entered into a non-binding agreement for an offtake capacity of 200,000 tpy from the project.
Development of Port Arthur LNG Phase 2 remains subject to a number of risks and uncertainties, including completing the required commercial agreements, securing and/or maintaining all necessary permits, obtaining financing, and reaching a final investment decision, among other factors, the company said.
