Sempra Infrastructure, a subsidiary of Sempra, announced today a significant regulatory achievement for its proposed Port Arthur LNG Phase 2 development project, receiving a crucial non-Free Trade Agreement (non-FTA) export authorization from the U.S. Department of Energy (DOE). This permit allows for the export of up to approximately 13.5 million tonnes per annum (Mtpa) of U.S.-produced liquefied natural gas (LNG) to countries without an existing free-trade agreement with the United States. This milestone marks the first such permit issued since the DOE's most recent public interest study.

The non-FTA authorization is a pivotal step for the Port Arthur LNG Phase 2 project, which is envisioned to play a substantial role in narrowing the U.S. trade deficit. The project's advancement aligns with the broader U.S. strategy to establish itself as a dominant force in international energy markets.

The Phase 2 project is currently positioned competitively within the LNG market and is undergoing active marketing and development efforts. Following its authorization from the Federal Energy Regulatory Commission in September 2023, the project is designed to incorporate two liquefaction trains. These trains are projected to produce approximately 13 Mtpa of LNG, significantly increasing the total liquefaction capacity of the Port Arthur LNG facility from its current Phase 1 capacity of approximately 13 Mtpa (which is presently under construction) to an impressive total of up to approximately 26 Mtpa. Furthermore, Sempra Infrastructure has indicated that future phases beyond Phase 2 are already in the early stages of development.

Recent advancements highlight the project's momentum. In June 2024, Sempra Infrastructure and a subsidiary of Aramco entered into a non-binding heads of agreement. This agreement contemplates both a long-term LNG offtake arrangement and an equity investment in the Port Arthur LNG Phase 2 project. Adding to this progress, in July 2024, Sempra Infrastructure announced the selection of Bechtel for a fixed-price engineering, procurement, and construction (EPC) contract for the project.

While the Port Arthur LNG Phase 2 project makes significant strides, the initial Port Arthur LNG Phase 1 project remains actively under construction. This foundational phase comprises trains 1 and 2, along with two LNG storage tanks and essential associated facilities. Construction is progressing as planned, with commercial operation dates for train 1 and train 2 anticipated in 2027 and 2028, respectively.

It is important to note that the ultimate development of the Port Arthur LNG Phase 2 project remains subject to a variety of factors. These include the successful completion of required commercial agreements, the securing and/or maintenance of all necessary permits, obtaining financing, and ultimately reaching a final investment decision.