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Released August 08, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--As part of its recent second-quarter earnings results released August 6, Sempra Energy (NYSE:SRE) (San Diego, California) provided an update on the growth efforts and capital investment programs across its Texas regulated utility (Oncor), California ("Sempra California"), and Infrastructure ("Sempra Infrastructure") segments.
Sempra is in the middle of a $48 billion capital spending plan for 2024 through 2028, with more than 90% of that amount attributed to its Texas and California utilities.
Oncor
Oncor delivers power to ERCOT and operates more than 143,000 miles of transmission and distribution (T&D) lines in Texas. "Oncor is currently executing on a record five-year capital plan of roughly $24 billion, with a pending regulatory filing to improve system resiliency by investing incremental capital of up to $3 billion from 2025 through 2027," said Allen Nye, the chief executive officer of Sempra, in the second-quarter earnings conference call.
He said the utility will reap the benefits of power-demand growth as well as the need to address resiliency across its service territory, which stretches from north-central Texas to the eastern and western edges of the state.
According to Nye, Oncor built, rebuilt or upgraded approximately 1,050 miles of transmission and distribution (T&D) lines and received approximately 100 new transmission point-of-interconnection (POI) requests--which increased the active interconnection requests in its queue by 13% year-over-year.
He added the total transmission POI requests from Oncor's large commercial and industrial ("LC&I") customers represents approximately 80 gigawatts (GW) of potential load, of which about 74% (59 GW) would come from potential data centers.
Nye said he expects "significant future growth" in Texas, as ERCOT projects peak electricity load in 2030 to be 152 gigawatts (GW) per year, nearly double the current record of 85.5 GW in August 2023. "We expect approximately 40% of that future load to be served by Oncor."
Regarding Oncor's future outlook, "there is a likelihood of higher capital spending in the future and we continue to review our forecast for future capital expenditures and expect to provide an update on the Q4 earnings call."
Industrial Info is tracking more than $2 billion worth of active and planned projects attributed to Oncor, all of which are in the pre-construction phase with a medium probability (81-99%) of moving forward as planned--although factors could alter, delay, or cancel investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a full list.
This includes its Ramhorn Hill-Dunham Transmission Line, which would provide service in the North Texas area. Roughly 20 miles of double-circuit, 345-kilovolt (kV) transmission line would run from the proposed Ramhorn Hill Switching Station near Rhome, to the proposed Dunham Switching Station in Flower Mound. Subscribers can read more information on the transmission line, as well as the Ramhorn Hill and Dunham switching station projects.
Sempra California
In the call, Sempra Chief Executive Officer Karen Sedgwick said the California unit "is strategically positioned in the largest economy in the U.S. and benefits from constructive regulation that supports investment opportunities to decarbonize and improve the safety and resiliency of the grid..."
Sempra owns two utilities in the state: San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas).
This month, SDG&E expects to begin a $130 million project at its Moreno Valley Compressor Station in Riverside County, California, that entails retrofitting existing units with emission-reduction equipment and retiring nine compressors installed in the 50's, 70's and 90's. It also involves constructing buildings and installing two lower-emission turbine-driven compressor gas packages and two electric-driven compressor gas packages with auxiliary and reduction equipment, to move natural gas through several pipelines located in Riverside and San Diego counties. The project is expected to wrap up in mid-2025. Click here for the project report.
After the completion of the upgrade/modernization project, SDG&E plans to decommission and dismantle five outdated gas compressors, four turbine compressors and four emergency generators, to reduce greenhouse-gas emissions. Click here to read more information on the project. This is part of a larger effort to modernize the Moreno Valley Compressor Station, which aims to incorporate hydrogen and renewable energy as decarbonization technologies.
Sempra Infrastructure
In the second-quarter earnings call, Sempra Chief Executive Officer Jeff Martin said the unit "benefits from strong tailwinds around the restoring of industry to North America and global demand for improved energy security associated with the export of liquefied natural gas [LNG] from the United States."
The unit's efforts are buoyed by the two-phase Port Arthur LNG production and export terminal project in Jefferson County, Texas. The $13 billion Phase 1, which is under construction, entails two natural gas liquefaction trains with a nameplate capacity of approximately 13 million tonnes per annum (Mtpa). It also involves two liquified natural gas (LNG) storage tanks and associated facilities. Train 1 and Train 2 are expected to be operational in 2027 and 2028, respectively. Sedgwick said the first phase remains on budget and schedule, and "recently received FERC [Federal Energy Regulatory Commission] authorization for 24/7 construction, which is expected to improve the overall efficiency of the construction activities."
Meanwhile, she said Phase 2, which would include another two trains, has not yet reached a final investment decision (FID).
Subscribers to Industrial Info's GMI Oil & Gas Production Project Database can click here for the Train #1 project report and click here for the Train #2 project report. For more information on Port Arthur LNG, see July 24, 2024, article - Bechtel Bags EPC Contract for Port Arthur LNG.
Earlier this year, the Biden administration ordered the Department of Energy (DOE) halt LNG export permits to non-Free Trade Agreement (FTA) countries, although a Donald Trump-appointed Louisiana federal judge in July vacated the order, following a lawsuit filed by 26 Republican-led states. The Biden administration could appeal the ruling, although they have not yet issued a statement. Sedgwick said the export permit for Port Arthur is "pending approval," but that she does not anticipate the pause will impact the development timeline.
For more information on the recent court reversal and Biden's effort, see July 5, 2024, article - Analysis: How Does the Court's Reversal of LNG Export Pause Affect Pending Projects?.
Subscribers to the GMI Database 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).
Sempra is in the middle of a $48 billion capital spending plan for 2024 through 2028, with more than 90% of that amount attributed to its Texas and California utilities.
Oncor
Oncor delivers power to ERCOT and operates more than 143,000 miles of transmission and distribution (T&D) lines in Texas. "Oncor is currently executing on a record five-year capital plan of roughly $24 billion, with a pending regulatory filing to improve system resiliency by investing incremental capital of up to $3 billion from 2025 through 2027," said Allen Nye, the chief executive officer of Sempra, in the second-quarter earnings conference call.
He said the utility will reap the benefits of power-demand growth as well as the need to address resiliency across its service territory, which stretches from north-central Texas to the eastern and western edges of the state.
According to Nye, Oncor built, rebuilt or upgraded approximately 1,050 miles of transmission and distribution (T&D) lines and received approximately 100 new transmission point-of-interconnection (POI) requests--which increased the active interconnection requests in its queue by 13% year-over-year.
He added the total transmission POI requests from Oncor's large commercial and industrial ("LC&I") customers represents approximately 80 gigawatts (GW) of potential load, of which about 74% (59 GW) would come from potential data centers.
Nye said he expects "significant future growth" in Texas, as ERCOT projects peak electricity load in 2030 to be 152 gigawatts (GW) per year, nearly double the current record of 85.5 GW in August 2023. "We expect approximately 40% of that future load to be served by Oncor."
Regarding Oncor's future outlook, "there is a likelihood of higher capital spending in the future and we continue to review our forecast for future capital expenditures and expect to provide an update on the Q4 earnings call."
Industrial Info is tracking more than $2 billion worth of active and planned projects attributed to Oncor, all of which are in the pre-construction phase with a medium probability (81-99%) of moving forward as planned--although factors could alter, delay, or cancel investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a full list.
This includes its Ramhorn Hill-Dunham Transmission Line, which would provide service in the North Texas area. Roughly 20 miles of double-circuit, 345-kilovolt (kV) transmission line would run from the proposed Ramhorn Hill Switching Station near Rhome, to the proposed Dunham Switching Station in Flower Mound. Subscribers can read more information on the transmission line, as well as the Ramhorn Hill and Dunham switching station projects.
Sempra California
In the call, Sempra Chief Executive Officer Karen Sedgwick said the California unit "is strategically positioned in the largest economy in the U.S. and benefits from constructive regulation that supports investment opportunities to decarbonize and improve the safety and resiliency of the grid..."
Sempra owns two utilities in the state: San Diego Gas & Electric (SDG&E) and Southern California Gas Company (SoCalGas).
This month, SDG&E expects to begin a $130 million project at its Moreno Valley Compressor Station in Riverside County, California, that entails retrofitting existing units with emission-reduction equipment and retiring nine compressors installed in the 50's, 70's and 90's. It also involves constructing buildings and installing two lower-emission turbine-driven compressor gas packages and two electric-driven compressor gas packages with auxiliary and reduction equipment, to move natural gas through several pipelines located in Riverside and San Diego counties. The project is expected to wrap up in mid-2025. Click here for the project report.
After the completion of the upgrade/modernization project, SDG&E plans to decommission and dismantle five outdated gas compressors, four turbine compressors and four emergency generators, to reduce greenhouse-gas emissions. Click here to read more information on the project. This is part of a larger effort to modernize the Moreno Valley Compressor Station, which aims to incorporate hydrogen and renewable energy as decarbonization technologies.
Sempra Infrastructure
In the second-quarter earnings call, Sempra Chief Executive Officer Jeff Martin said the unit "benefits from strong tailwinds around the restoring of industry to North America and global demand for improved energy security associated with the export of liquefied natural gas [LNG] from the United States."
The unit's efforts are buoyed by the two-phase Port Arthur LNG production and export terminal project in Jefferson County, Texas. The $13 billion Phase 1, which is under construction, entails two natural gas liquefaction trains with a nameplate capacity of approximately 13 million tonnes per annum (Mtpa). It also involves two liquified natural gas (LNG) storage tanks and associated facilities. Train 1 and Train 2 are expected to be operational in 2027 and 2028, respectively. Sedgwick said the first phase remains on budget and schedule, and "recently received FERC [Federal Energy Regulatory Commission] authorization for 24/7 construction, which is expected to improve the overall efficiency of the construction activities."
Meanwhile, she said Phase 2, which would include another two trains, has not yet reached a final investment decision (FID).
Subscribers to Industrial Info's GMI Oil & Gas Production Project Database can click here for the Train #1 project report and click here for the Train #2 project report. For more information on Port Arthur LNG, see July 24, 2024, article - Bechtel Bags EPC Contract for Port Arthur LNG.
Earlier this year, the Biden administration ordered the Department of Energy (DOE) halt LNG export permits to non-Free Trade Agreement (FTA) countries, although a Donald Trump-appointed Louisiana federal judge in July vacated the order, following a lawsuit filed by 26 Republican-led states. The Biden administration could appeal the ruling, although they have not yet issued a statement. Sedgwick said the export permit for Port Arthur is "pending approval," but that she does not anticipate the pause will impact the development timeline.
For more information on the recent court reversal and Biden's effort, see July 5, 2024, article - Analysis: How Does the Court's Reversal of LNG Export Pause Affect Pending Projects?.
Subscribers to the GMI Database 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).
