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Released October 03, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land,
Texas)--Baker Hughes (Houston, Texas) is slated to supply the liquefaction equipment necessary for the second phase of Sempra Energy's (San Diego, California) liquefied natural gas (LNG) project in Port Arthur, Texas, following an award from Bechtel Energy (Reston, Virginia).
Building on plans for the initial phase, Baker Hughes will deploy four turbines and eight compressors across two liquefaction units, or trains, that will support development of 13 million metric tons per annum (MTPA) of LNG.
"This award builds on our track record of providing efficient, reliable LNG technology solutions that strengthen the global gas value chain and support a consistent supply of energy worldwide," said Ganesh Ramaswamy, executive vice president of industrial and energy technology at Baker Hughes.
Terms of the contract were not disclosed. Sempra only made its final investment decision (FID) on the second phase of Port Arthur last week. An offshoot of Sempra, Port Arthur LNG is working with engineering firm Bechtel Corporation (Reston, Virginia) to develop the export facility in Texas. The current facility includes 150,000 cubic meters of LNG storage capacity and can export as much as 6.5 MTPA for each existing liquefaction center.
With capital expenditures pegged at about $12 billion, the two trains for Phase 2 will double the nameplate capacity to 26 MTPA.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can learn more by viewing the project reports.
The facility is already under construction. The Saudi Arabian Oil Company (Riyadh, Saudi Arabia) has a 25% stake in the project.
ConocoPhillips (Houston) is slated to purchase 4 MTPA of LNG from the Port Arthur LNG Phase 2 project over a 20-year term on a free-on-board basis. In 2022, the company signed a 20-year agreement to offtake 5 MTPA from Phase 1 and executed an agreement to purchase a 30% stake in the project.
ConocoPhillips is considered an anchor partner at Port Arthur. Phase 1 is expected to start up and begin exports in 2027, helping to ensure the United States remains the world leader in LNG exports.
The amount of feed gas running to the functioning LNG terminals is coming off near-record highs of 16 billion cubic feet per day (Bcf/d), down slightly from previous highs as the Cove Point LNG facility in Maryland remains offline due to regular seasonal maintenance.
From Iraq to Canada, the race is on to build up supplies of LNG, which avoids some of the geopolitical sensitivities associated with piped natural gas. Wael Sawan, the chief executive officer of Shell (London, England), told the Economic Club of New York on Monday that he's shocked by the number of new investment decisions.
"The number of final investment decisions being taken surprises me, if I am honest, because it's at the higher end of the cost curve. Yet those capacities continue to come in," he was quoted by Seeking Alpha as saying. "So it's not economically fully rational."
The International Energy Agency said it expects total LNG capacity to increase by around 50% by the end of the decade, potentially putting the global market in an oversupply situation. Companies that have already reached FID have outlined more capacity than during the five-year period ending in 2024, the agency reported.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Building on plans for the initial phase, Baker Hughes will deploy four turbines and eight compressors across two liquefaction units, or trains, that will support development of 13 million metric tons per annum (MTPA) of LNG.
"This award builds on our track record of providing efficient, reliable LNG technology solutions that strengthen the global gas value chain and support a consistent supply of energy worldwide," said Ganesh Ramaswamy, executive vice president of industrial and energy technology at Baker Hughes.
Terms of the contract were not disclosed. Sempra only made its final investment decision (FID) on the second phase of Port Arthur last week. An offshoot of Sempra, Port Arthur LNG is working with engineering firm Bechtel Corporation (Reston, Virginia) to develop the export facility in Texas. The current facility includes 150,000 cubic meters of LNG storage capacity and can export as much as 6.5 MTPA for each existing liquefaction center.
With capital expenditures pegged at about $12 billion, the two trains for Phase 2 will double the nameplate capacity to 26 MTPA.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can learn more by viewing the project reports.
The facility is already under construction. The Saudi Arabian Oil Company (Riyadh, Saudi Arabia) has a 25% stake in the project.
ConocoPhillips (Houston) is slated to purchase 4 MTPA of LNG from the Port Arthur LNG Phase 2 project over a 20-year term on a free-on-board basis. In 2022, the company signed a 20-year agreement to offtake 5 MTPA from Phase 1 and executed an agreement to purchase a 30% stake in the project.
ConocoPhillips is considered an anchor partner at Port Arthur. Phase 1 is expected to start up and begin exports in 2027, helping to ensure the United States remains the world leader in LNG exports.
The amount of feed gas running to the functioning LNG terminals is coming off near-record highs of 16 billion cubic feet per day (Bcf/d), down slightly from previous highs as the Cove Point LNG facility in Maryland remains offline due to regular seasonal maintenance.
From Iraq to Canada, the race is on to build up supplies of LNG, which avoids some of the geopolitical sensitivities associated with piped natural gas. Wael Sawan, the chief executive officer of Shell (London, England), told the Economic Club of New York on Monday that he's shocked by the number of new investment decisions.
"The number of final investment decisions being taken surprises me, if I am honest, because it's at the higher end of the cost curve. Yet those capacities continue to come in," he was quoted by Seeking Alpha as saying. "So it's not economically fully rational."
The International Energy Agency said it expects total LNG capacity to increase by around 50% by the end of the decade, potentially putting the global market in an oversupply situation. Companies that have already reached FID have outlined more capacity than during the five-year period ending in 2024, the agency reported.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
