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Released March 22, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Sempra Energy (NYSE:SRE) (San Diego, California) announced Tuesday it has reached a positive final investment decision for the first phase of its liquefied natural gas (LNG) project in Port Arthur, Texas, which already has a number of binding long-term offtake agreements in place. Sempra estimates the project's total capital expenditures to be $13 billion.
Phase I involves constructing two production trains with a combined capacity of 13 million tonnes per annum, two LNG storage tanks and associated facilities. Sempra expects the two trains to reach commercial operation in 2027 and 2028, respectively. Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can click here for related project reports.
Sempra also announced other project developments: it has closed the project's $6.8 billion debt financing; agreed to sell an "indirect, non-controlling interest," worth between 25% and 49%, to an infrastructure fund managed by KKR & Company Incorporated (NYSE:KKR) (New York); and closed its joint venture with ConocoPhillips (NYSE:COP) (Houston, Texas), in which ConocoPhillips owns a 30% interest in the project and also manages the feed-gas supply requirements.
In November of last year, Conoco announced a 20-year sale and purchase agreement (SPA) to purchase 5 million tonnes per annum (Mtpa) of LNG from the Port Arthur Phase I project, part of a total 10.5 Mtpa worth of binding SPAs attached to the project, according to Sempra. Other offtakers include:
Port Arthur LNG is not the only major LNG project to recently reach a final investment decision: last week, Venture Global LNG (Arlington, Virginia) said it will proceed with the second phase of its Plaquemines LNG export plant in Louisiana after securing $7.8 billion of financing. The project includes constructing 24 mid-scale trains, and Phase I construction is underway and expected to be completed in 2024. Phase II would double the plant's production capacity, which when fully developed, is expected to reach 20 million Mtpa. Subscribers to the GMI Production Database can click here for related reports.
The Phase II customers include the Asia-Pacific unit of Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) and Chevron Corporation (NYSE:CVX) (San Ramon, California).
According to the U.S. Energy Information Administration (EIA), as of late January, buyers had committed to about 71% of the Port Arthur Phase 1 production and 90% of the Plaquemines LNG production. Almost three-quarters of the total SPAs signed with LNG projects in 2022 are for 20-year terms that begin when the project starts commercial operations, according to the agency.
Subscribers can click here for a look at all of the reports for projects discussed in this article, and click here for the related plant profiles.
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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).
Phase I involves constructing two production trains with a combined capacity of 13 million tonnes per annum, two LNG storage tanks and associated facilities. Sempra expects the two trains to reach commercial operation in 2027 and 2028, respectively. Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Project Database can click here for related project reports.
Sempra also announced other project developments: it has closed the project's $6.8 billion debt financing; agreed to sell an "indirect, non-controlling interest," worth between 25% and 49%, to an infrastructure fund managed by KKR & Company Incorporated (NYSE:KKR) (New York); and closed its joint venture with ConocoPhillips (NYSE:COP) (Houston, Texas), in which ConocoPhillips owns a 30% interest in the project and also manages the feed-gas supply requirements.
In November of last year, Conoco announced a 20-year sale and purchase agreement (SPA) to purchase 5 million tonnes per annum (Mtpa) of LNG from the Port Arthur Phase I project, part of a total 10.5 Mtpa worth of binding SPAs attached to the project, according to Sempra. Other offtakers include:
- a subsidiary of RWE AG (Essen, Germany), for 2.25 Mtpa across 15 years
- Polish energy company PKN Orlen (Plock), for 1 Mtpa for 20 years on a free-on-board basis, which means the buyer pays for and receives the LNG at the loading terminal
- INEOS (London, England), for the supply of approximately 1.4 Mtpa for a term of 20 years
- Engie S.A. (Paris, France), for about 0.875 Mtpa for 15 years, delivered on a free-on-board basis
Port Arthur LNG is not the only major LNG project to recently reach a final investment decision: last week, Venture Global LNG (Arlington, Virginia) said it will proceed with the second phase of its Plaquemines LNG export plant in Louisiana after securing $7.8 billion of financing. The project includes constructing 24 mid-scale trains, and Phase I construction is underway and expected to be completed in 2024. Phase II would double the plant's production capacity, which when fully developed, is expected to reach 20 million Mtpa. Subscribers to the GMI Production Database can click here for related reports.
The Phase II customers include the Asia-Pacific unit of Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) and Chevron Corporation (NYSE:CVX) (San Ramon, California).
According to the U.S. Energy Information Administration (EIA), as of late January, buyers had committed to about 71% of the Port Arthur Phase 1 production and 90% of the Plaquemines LNG production. Almost three-quarters of the total SPAs signed with LNG projects in 2022 are for 20-year terms that begin when the project starts commercial operations, according to the agency.
Subscribers can click here for a look at all of the reports for projects discussed in this article, and click here for the related plant profiles.
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) platform 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 more than 200,000 current and future projects worth $17.8 trillion (USD).
