NEWS RELEASE
Media Contact Alejandro Larenas
Sempra Infrastructure
Financial Contact: Jenell McKay
Sempra
(877) 736-7727
Sempra Infrastructure Announces
EPC Contract with Bechtel for
Port Arthur LNG Phase 2
HOUSTON, July 18, 2024 – Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE) (BMV: SRE), today 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 under development in Port Arthur, Texas.
“We are thrilled to achieve this milestone with Bechtel for the Port Arthur LNG Phase 2 development project and are confident that our continued collaboration with this world-class construction firm on the Port Arthur site will further strengthen our ability to execute this project,” said Justin Bird, CEO of Sempra Infrastructure. “Building on the success of Port Arthur LNG Phase 1, which is currently under construction, the Phase 2 project is expected to further enhance the supply of secure, abundant and reliable U.S. natural gas to customers around the globe.”
“We are excited for the opportunity to advance our partnership with Sempra Infrastructure on the Port Arthur LNG Phase 2 project, a vital project that will play a crucial role in meeting the world’s increasing need for cleaner and more reliable energy,” said Paul Marsden, President of Bechtel Energy. “This partnership positions Bechtel and Sempra Infrastructure to not only deliver a transformative energy infrastructure project but also brings additional significant economic growth and development opportunities to the local community.”
As part of the EPC contract, Bechtel will perform the detailed engineering, procurement, construction, commissioning, startup, performance testing and operator training activities for the project. The scope of the agreement also includes the ability to conduct pre-final investment decision work to better assure project cost and schedule certainty.
The proposed Port Arthur LNG Phase 2 project is competitively positioned and 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 approximately 13 Mtpa of LNG, which would increase the total liquefaction capacity of the facility from approximately 13 Mtpa to up to 26 Mtpa.
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 facilities. Construction of the project continues to progress, and the expected commercial operation dates for train 1 and train 2 are 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 Mtpa 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 .2 Mtpa from the project.
The development of the Port Arthur LNG Phase 2 project 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.
About Sempra Infrastructure
Sempra Infrastructure, headquartered in Houston, is focused on delivering energy for a better world by developing, building and operating low carbon solutions, energy networks, and LNG infrastructure that are expected to play a crucial role in the energy systems of the future. Through the combined strength of its assets in North America, Sempra Infrastructure is helping meet changing energy needs and creating access to renewable power and natural gas, while advancing carbon sequestration and clean hydrogen. The company is a recognized industry leader, having received the 2023 World Energy Transition Award at the World LNG Summit. Sempra Infrastructure is a subsidiary of Sempra (NYSE: SRE), a leading North American energy infrastructure company. For more information, visit SempraInfrastructure.com or connect with Sempra Infrastructure on social media @SempraInfra.
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This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise.
In this press release, forward-looking statements can be identified by words such as “believe,” “expect,” “intend,” “anticipate,” “contemplate,” “plan,” “estimate,” “project,” “forecast,” “envision,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “construct,” “develop,” “opportunity,” “preliminary,” “initiative,” “target,” “outlook,” “optimistic,” “poised,” “positioned,” “maintain,” “continue,” “progress,” “advance,” “goal,” “aim,” “commit,” or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations.
Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include: decisions, investigations, inquiries, regulations, denials or revocations of permits, consents, approvals or other authorizations, and other actions, including the failure to honor contracts and commitments, by the (i) U.S. Department of Energy, Comisión Reguladora de Energía, U.S. Federal Energy Regulatory Commission, U.S. Internal Revenue Service and other regulatory bodies and (ii) U.S., Mexico and states, counties, cities and other jurisdictions therein and in other countries where we do business; the success of business development efforts, construction projects, acquisitions, divestitures and other significant transactions, including risks related to (i) being able to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) realizing anticipated benefits from any of these efforts if completed, (iv) obtaining third-party consents and approvals and (v) third parties honoring their contracts and commitments; macroeconomic trends or other factors that could change our capital expenditure plans and their potential impact on growth; litigation, arbitrations, property disputes and other proceedings, and changes to laws and regulations, including those related to tax and trade policy and the energy industry in Mexico; cybersecurity threats, including by state and state-sponsored actors, of ransomware or other attacks on our systems or the systems of third parties with which we conduct business, including the energy grid or other energy infrastructure; the availability, uses, sufficiency, and cost of capital resources and our ability to borrow money or otherwise raise capital on favorable terms and meet our obligations, including due to (i) actions by credit rating agencies to downgrade our credit ratings or place those ratings on negative outlook, (ii) instability in the capital markets, or (iii) rising interest rates and inflation; the impact on our ability to pass through higher costs to customers due to volatility in inflation, interest and foreign currency exchange rates and commodity prices; the impact of climate and sustainability policies, laws, rules, regulations, trends and required disclosures, including actions to reduce or eliminate reliance on natural gas, the risk of nonrecovery for stranded assets, and uncertainty related to emerging technologies; weather, natural disasters, pandemics, accidents, equipment failures, explosions, terrorism, information system outages or other events, such as work stoppages, that disrupt our operations, damage our facilities or systems, cause the release of harmful materials or fires or subject us to liability for damages, fines and penalties, some of which may not be recoverable through insurance or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of natural gas, including disruptions caused by failures in the pipeline system or limitations on the withdrawal of natural gas from storage facilities; and other uncertainties, some of which are difficult to predict and beyond our control.
These risks and uncertainties are further discussed in the reports that Sempra has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on Sempra’s website, www.sempra.com. Investors should not rely unduly on any forward-looking statements.
Sempra Infrastructure and Sempra Infrastructure Partners are not the same company as San Diego Gas & Electric Company or Southern California Gas Company, and none of Sempra Infrastructure, Sempra Infrastructure Partners nor any of its subsidiaries is regulated by the California Public Utilities Commission.
Membership and Growth: A Bright Future for the Greater Port Arthur Chamber of Commerce
The Greater Port Arthur Chamber of Commerce is at a pivotal moment in its history, reflecting on the past while boldly looking toward the future. With a vibrant community and a commitment to fostering business growth, the Chamber is more than just an organization; it’s a cornerstone of Port Arthur’s economic vitality.
Expanding Membership: A Testament to Community Spirit
One of the most exciting trends within the Chamber is the steady growth in membership. Over the past year, we have welcomed numerous new businesses, ranging from startups to established companies, each bringing unique strengths and perspectives to our community. This expansion is a testament to the thriving entrepreneurial spirit in Port Arthur and the value that our Chamber provides.
Membership in the Greater Port Arthur Chamber is more than just a badge of honor; it’s an investment in local economic development. Members gain access to a wide array of resources, networking opportunities, and advocacy initiatives that empower them to succeed in today’s competitive landscape.
Networking: Building Connections That Matter
At the heart of the Chamber’s mission is the belief that connections drive growth. Our networking events, monthly luncheons, and community forums have become vital platforms for members to meet, collaborate, and innovate. These gatherings not only strengthen existing relationships but also foster new partnerships that can lead to exciting business opportunities.
Recent events like our “Breakfast & Coffee with the Presidents” have highlighted the power of collaboration, showcasing how local businesses can come together to support each other and elevate the entire community. As we continue to increase our membership, the potential for collaboration expands exponentially.
Professional Development: Equipping Members for Success
The Chamber is committed to providing its members with the tools and skills they need to thrive. Through our ‘Lunch and Learn” workshops, administrative training sessions, and educational programs, we empower our members to navigate the challenges of the modern business environment. Topics such as digital marketing, financial management, and leadership development are just a few areas where we aim to provide valuable insights.
By investing in professional development, we ensure that our members are not only competitive but also equipped to lead their industries.
Advocacy: A Strong Voice for Local Businesses
The Greater Port Arthur Chamber of Commerce serves as a powerful advocate for local businesses, representing their interests at the municipal, state, and federal levels. With ongoing initiatives focused on economic development, infrastructure improvements, and workforce training, we strive to create a favorable business climate that encourages growth and sustainability.
Our members play a crucial role in these advocacy efforts, providing invaluable feedback and insights that shape our priorities and initiatives. Together, we can create a stronger voice for Port Arthur’s business community.
Celebrating Success: Member Spotlights
As our membership grows, so do the success stories emerging from our community. Each month, we take pride in highlighting a member who has made significant contributions to our local economy. Whether it’s through innovative services, community involvement, or job creation, these businesses exemplify the spirit of Port Arthur.
Recognizing these achievements not only inspires other members but also reinforces the value of being part of the Chamber.
Looking Ahead: The Future is Bright
As we look to the future, the Greater Port Arthur Chamber of Commerce is poised for continued growth and success. Our focus remains on building a strong, inclusive community that supports businesses of all sizes. With ongoing initiatives aimed at enhancing membership engagement and fostering collaboration, the sky is truly the limit.
We encourage all members to actively participate in Chamber activities, share their ideas, and continue to advocate for one another. Together, we can build a thriving economic ecosystem that benefits everyone in Port Arthur.
Join Us on This Journey
If you’re not yet a member of the Greater Port Arthur Chamber of Commerce, now is the perfect time to join. Become part of a dynamic network committed to supporting local businesses and driving economic growth. Together, we can achieve remarkable things for our community!
For more information about membership opportunities and upcoming events, visit our website or contact us directly. Let’s continue to grow, thrive, and make Port Arthur a better place for all!
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