Project Overview

Port Arthur LNG is an energy infrastructure development in Southeast Texas. The construction of the project will be in two phases. Phase I is under construction, with a nameplate capacity of 13 Mtpa, and it will include two trains, Train 1 and Train 2. Their expected commercial operation dates are 2027 and 2028. Phase II will comprise two new trains, Train 3 and Train 4, with a nameplate capacity of an additional 13 Mtpa, making the total capacity 26 Mtpa.  

The project showcases an investment of USD 13 billion in the new energy infrastructure. The infrastructure project will encourage local, regional, and national economies by creating 5,000 high-skilled jobs and supporting small businesses. Bechtel Energy Inc. has been awarded the engineering, procurement, and construction (EPC) contract.

Project Background

The Port Arthur LNG Terminal proposal was put forward in the early 2000s. It began as a regasification facility, but it evolved into a liquefaction and export facility due to the change in market trends. It is under the supervision of Sempra Infrastructure and aims to increase energy export capacity and meet the global demand for LNG. 

In April 2019, the U.S. Federal Energy Regulatory Commission (FERC) approved the project authorization of Port Arthur LNG Phase I. It allows the construction of the liquefaction facility. Phase I includes two natural gas liquefaction trains with a total capacity of 13 Mtpa. The FERC’s approval in September 2023 for Phase II is a milestone in the project development. It will contain two further liquefaction trains with a total capacity of approximately 26 Mtpa. 

 As of 2015, the total investment in the project has crossed USD 40 million. It supports local vendors, non-profits, schools, and business development groups. The investment in the energy infrastructure positioned the U.S. as a key player in the global LNG market. 

Project Scope

The Port Arthur liquefied natural gas (LNG) project is designed to generate and deliver LNG to the world. By the end of the project, its total capacity will be 26 million tonnes per annum (Mtpa). It aims to meet the rising demand for LNG and improve energy security. It focuses on economic growth while creating skilled job opportunities. 

Infrastructure

• Liquefaction trains: There will be 4 liquefaction trains with a total capacity of 26 Mtpa. 

• Storage and marine facility: There would be two LNG storage tanks with a capacity of 16,000 cubic meters each. Marine facilities, including berths, are designed to accommodate LNG carriers for export. It is built in Phase I and will be utilized for both phases.

• Feed Gas Supply: Around 2 billion cubic feet of natural gas per day will be delivered through two pipelines owned by Port Arthur Pipelines.  

• Texas connector: A 55 km pipeline with two compressor stations that connect to interstate and intrastate pipelines north of the facility. 

• Louisiana Connector: A 211 km (pipeline with one compressor station in Allen Parish, linking to southern gas supply basins.

• Site Development: Relocation and upgradation of a 3.5-mile section of Highway 87 to the Texas Department of Transportation standards, completed as part of Phase I to enhance site access. 
  

Port Arthur Project Location

The Port Arthur LNG Project is located in Port Arthur, Jefferson County, Texas, USA. It has direct access to the Gulf of Mexico through the Sabine-Neches ship channel.

Port Arthur LNG Cost

The total cost of Port Arthur LNG phase I is approximately USD 13 billion. It will have a total capacity of 13 million tonnes per annum. It also includes two storage tanks with a capacity of 160,000 cubic meters. The expected cost for phase II is USD 2 billion.

Port Arthur LNG FID

On 20th March 2023, Sempra announced its final investment decision (FID) for the development, construction, and operation of Port Arthur Phase I in Jefferson County. 

The long-term contractual capacity of approximately 10.5 Mtpa is fully subscribed under the long-term agreements with strong counterparties - ConocoPhillips, RWE Supply and Trading, PKN ORLEN S.A., INEOS, and ENGIE S.A. It all became effective upon reaching FID.

Port Arthur Sempra Infrastructure

Sempra is a prime North American energy infrastructure company. It is capable of meeting the energy requirements of around 40 million consumers. This leading company helps electrify and decarbonize some of the most remarkable economic markets, including California, Texas, and the LNG export market.

Sempra Infrastructure partnered with an affiliate of ConocoPhillips and signed an agreement to sell an indirect, non-controlling interest in the project to an infrastructure fund managed by KKR. Sempra Infrastructure will solve the problems of the world’s energy security and decarbonization.

With a strong customer base, top-tier equity sponsors in ConocoPhillips and KKR, and a world-class contractor in Bechtel, the project will become one of America’s most remarkable energy infrastructure investments. It will boost job opportunities. Forbye, it ensures continued economic growth in Texas and Jefferson County. The new natural gas liquefaction at Port Arthur will cement Texas's position as the energy resource in the world. 

Project Timeline

Port Arthur Phase I

Port Arthur Phase I is a natural gas liquefaction and export terminal in Southeast Texas. It has direct access to the Gulf of Mexico through the Sabine-Neches ship channel. On reaching its FID in March 2023, Sempra Infrastructure signed an EPC contract with Bechtel Energy. It is a joint venture project between Sempra Infrastructure and ConocoPhillips. It shares a long-term, fully subscribed capacity with ConocoPhillips, RWE Supply and Trading, PKN Orlen S.S., INEOS, and Engie S.A.

Phase I will include the following.

• It will have two natural gas liquefaction trains.

• Total production capacity of approximately 13.5 million tonnes.

• Supply power to around 27,000 households annually.

• New natural gas pipeline pictures to discharge fuel to the terminal under favorable conditions.

• Two LNG storage tanks with associated facilities. 

• Marine facilities that include a marine berth for LNG vessel berthing and loading of LNG

• Natural gas liquids and refrigerant storage.

• Feed gas Pre-treatment.

• Truck loading and unloading areas.

Port Arthur LNG Phase II - Expansion

In September 2023, the Federal Energy Regulatory Commission (FERC) approved the project authorization of the Port Arthur LNG Phase II. With this approval, Sempra reached a key milestone in the Phase II project. 

• The Phase II project is expected to expand liquefaction export with the other two trains - Train 3 and Train 4. It will double the total nameplate capacity. 

• Phase II will help meet the future demand for U.S. LNG supplies to serve the markets of Asia and Europe. 

• It will enable global customers to meet decarbonization goals by replacing heavier hydrocarbons. Thus, improving energy reliability and security.  

• Phase II envisions generating new jobs, supporting local small businesses, and providing economic benefits.

• Phase II will increase the total liquefaction capacity of the facility to an additional 13 Mtpa, making a total capacity of approximately 26 Mtpa.

• It expects to include further LNG storage tanks and marine berths.

Port Arthur Contractors

Bechtel is the primary contractor for Port Arthur LNG Phase I and II. It has signed an engineering, procurement, and construction (EPC) contract with Sempra Infrastructure. For Phase I, Bechtel will manage engineering, procurement, construction, commissioning, startup, performance testing, and operator training. For Phase II, Bechtel signed a fixed-price EPC contract on 18th July 2024. It aims to increase the capacity of the facility to 26 Mtpa. 

Port Arthur Project Investors

Port Arthur LNG Benefits

The Port Arthur LNG project comes with countless benefits in areas of economic growth, environmental safety, and energy security.

• Creating jobs: The project will bring up to 5,000 skilled jobs. It will give rise to employment opportunities and economic growth. 

• Tax revenue: It will increase the tax revenue for Jefferson County and Texas from construction, operations, and related economic activity.

• Global energy exporter: The investment in the energy infrastructure positioned the U.S. as a key player in the global LNG market. It became the leading exporter of LNG with a total capacity of 26 Mtpa. 

• Diversification of energy export: It will improve the U.S.’s ability to widen its energy export portfolio. It will enable us to reduce the reliance on the Global LNG supply in other regions.

• Carbon energy replacement: Port Arthur LNG will replace coal and fuel oil, reducing global greenhouse gas emissions. 

• Benefits to the local community: From 2015 to 2025, the total investment in education, environment, safety programs, and community development is USD 40 million. 

• Future Investments: Partnerships with ConocoPhillips and KKR will attract future investments.

• Supports local businesses: It supports local businesses by investing in community projects.

Conclusion

The Port Arthur LNG Project is located in Jefferson County, Texas. It has direct access to the Gulf of Mexico through the Sabine-Neches ship channel. Phase I includes two liquefaction trains and two storage tanks. It contains associated facilities with a nameplate capacity of 13 Mtpa. Phase II Port Arthur LNG will comprise two new trains - Train 3 and Train 4. The total capacity of the facility will be approximately 26 Mtpa. 

Sempra Infrastructure is the primary developer of Port Arthur LNG. ConocoPhillips and KKR are the other investors in the project. It shares 30% and 25% to 49% of the non-controlling interest in the project. Bechtel Energy Inc. has signed an EPC contract with Sempra Infrastructure. 

The Sempra Infrastructure aims to increase the export capacity of the energy produced. It focuses on meeting the global demand for LNG. 

The cost of the Phase I Arthur project is approximately USD 13 billion. Phase II will cost approximately USD 2 billion. The project will create an expected 5,000 high-skilled jobs. Furthermore, it boosts the economy of Texas and Jefferson County. 

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