Port Arthur LNG Phase 2 Project Receives Federal Energy Regulatory Commission Authorization

Sep 25, 2023


NEWS RELEASE

Media Contact:   Kym Butler
media@sempraglobal.com

Financial Contact: Jenell McKay
(877) 736-7727
investor@sempra.com

Port Arthur LNG Phase 2 Project Receives Federal Energy Regulatory Commission Authorization

HOUSTON, September 21, 2023 – Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE) (BMV: SRE),
today announced that the Federal Energy Regulatory Commission (FERC) has approved the permit
authorizing the Port Arthur LNG Phase 2 expansion project under development at Port Arthur LNG in
Jefferson County, Texas. The permit is a major regulatory milestone for a proposed Phase 2 project,
including the addition of two liquefaction trains (trains 3 and 4) capable of producing up to 13
million tonnes per annum (Mtpa) of liquefied natural gas (LNG).
“Sempra Infrastructure is committed to investing in infrastructure opportunities that help enable a
cleaner and more secure energy future,” said Justin Bird, chief executive officer of Sempra
Infrastructure. “Today’s FERC order is a significant step in our ability to advance the global
energy transition, creating an opportunity to double the amount of secure and reliable
U.S. natural gas that Port Arthur LNG can help deliver to global markets.”
With Phase 1 currently under construction, the development of the proposed Phase 2 project could
increase the total liquefaction capacity of the facility from approximately 13 Mtpa to
approximately 26 Mtpa. The proposed project is also expected to include an additional LNG storage
tank and marine berth and would benefit from some of the common facilities currently under
construction that were previously approved as part of the Port Arthur LNG Phase 1 permitting
process.
Sempra Infrastructure continues to evaluate opportunities to develop the entirety of the Port
Arthur site while also exploring potential projects to reduce the carbon intensity of its LNG,
positioning Port Arthur as a flagship hub for the energy transition. The company is leveraging the
integrated capabilities of its business segments to develop the proposed Port Arthur Pipeline Texas
Connector project, the proposed Post Arthur Pipeline Louisiana Connector project and develop new
gas storage facilities, all of which would serve the Port Arthur LNG facility.
To further the advancement of the Port Arthur Energy Hub, the company recently acquired 38,000
acres of pore space and relevant surface rights to support the proposed Titan Carbon Sequestration
project, which is proximal in location to the Port Arthur LNG facility. The project targets
capturing carbon from Sempra Infrastructure’s Port Arthur LNG Phase 1 and 2 projects that are
currently under development and has the potential to unlock other net-zero energy infrastructure
opportunities. This comprehensive development approach utilizes Sempra Infrastructure’s broad
development and operational expertise to enhance the total value of Port Arthur and can deliver
significant value for the local community, opening up substantial avenues for economic growth
opportunities for the region.
“The value proposition of the proposed Port Arthur Energy Hub goes beyond monetary
investment in the region,” said Bird. “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.”
The Port Arthur LNG Phase 2 project is under active marketing and development. The project could
help meet future demand for U.S. LNG supplies expected to serve European, Asian and other global
markets as countries look to enhance energy reliability and security, and displace coal in power
production.
The Port Arthur LNG Phase 1 project is currently under construction and is designed to include two
natural gas liquefaction trains, two LNG storage tanks and associated facilities.
Development of the Port Arthur LNG Phase 2 project, the Titan Carbon Sequestration project, the
proposed Port Arthur Pipeline Louisiana Connector project, proposed Port Arthur Texas Connector
project and new gas storage facilities is contingent upon completing the required commercial
agreements, securing and/or maintaining all necessary permits, obtaining financing, and reaching a
final investment decision, among other factors.

 


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