HOUSTON, July 18,
2024 /PRNewswire/ -- Sempra Infrastructure, a
subsidiary of Sempra (NYSE: SRE) (BMV: SRE), today announced
that Port Arthur LNG Phase 2 and Bechtel Energy (Bechtel) have
signed a fixed-price engineering, procurement and construction
(EPC) contract for the Port Arthur LNG Phase 2 project under
development in Port Arthur,
Texas.
"We are thrilled to achieve this milestone with Bechtel for the
Port Arthur LNG Phase 2 development project and are confident that
our continued collaboration with this world-class construction firm
on the Port Arthur site will
further strengthen our ability to execute this project," said
Justin Bird, CEO of Sempra
Infrastructure. "Building on the success of Port Arthur LNG Phase
1, which is currently under construction, the Phase 2 project is
expected to further enhance the supply of secure, abundant and
reliable U.S. natural gas to customers around the globe."
"We are excited for the opportunity to advance our partnership
with Sempra Infrastructure on the Port Arthur LNG Phase 2 project,
a vital project that will play a crucial role in meeting the
world's increasing need for cleaner and more reliable energy,"
said Paul Marsden, President of Bechtel Energy. "This
partnership positions Bechtel and Sempra Infrastructure to not only
deliver a transformative energy infrastructure project but also
brings additional significant economic growth and development
opportunities to the local community."
As part of the EPC contract, Bechtel will perform the detailed
engineering, procurement, construction, commissioning, startup,
performance testing and operator training activities for the
project. The scope of the agreement also includes the ability to
conduct pre-final investment decision work to better assure project
cost and schedule certainty.
The proposed Port Arthur LNG Phase 2 project is competitively
positioned and is under active marketing and development. The
project received authorization from the Federal Energy Regulatory
Commission in September 2023 and is
expected to include two liquefaction trains capable of producing
approximately 13 Mtpa of LNG, which would increase the total
liquefaction capacity of the facility from approximately 13 Mtpa to
up to 26 Mtpa.
The Port Arthur LNG Phase 1 project is currently under
construction and consists of trains 1 and 2, as well as two LNG
storage tanks and associated facilities. Construction of the
project continues to progress, and the expected commercial
operation dates for train 1 and train 2 are 2027 and 2028,
respectively.
In June, Sempra Infrastructure and a subsidiary of Aramco signed
a non-binding heads of agreement contemplating the purchase of 5
Mtpa of LNG and a 25% equity investment in the Port Arthur LNG
Phase 2 project. In December 2022,
Port Arthur LNG Phase 2 and INEOS also entered into a non-binding
agreement for an offtake capacity of .2 Mtpa from the project.
The development of the Port Arthur LNG Phase 2 project remains
subject to a number of risks and uncertainties, including
completing the required commercial agreements, securing and/or
maintaining all necessary permits, obtaining financing, and
reaching a final investment decision, among other factors.
About Sempra Infrastructure
Sempra Infrastructure,
headquartered in Houston, is
focused on delivering energy for a better world by developing,
building and operating low carbon solutions, energy networks, and
LNG infrastructure that are expected to play a crucial role in the
energy systems of the future. Through the combined strength of its
assets in North America, Sempra
Infrastructure is helping meet changing energy needs and creating
access to renewable power and natural gas, while advancing carbon
sequestration and clean hydrogen. The company is a recognized
industry leader, having received the 2023 World Energy Transition
Award at the World LNG Summit. Sempra Infrastructure is a
subsidiary of Sempra (NYSE: SRE), a leading North American energy
infrastructure company. For more information, visit
SempraInfrastructure.com or connect with Sempra Infrastructure
on social media @SempraInfra.
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are based on assumptions about the
future, involve risks and uncertainties, and are not guarantees.
Future results may differ materially from those expressed or
implied in any forward-looking statement. These forward-looking
statements represent our estimates and assumptions only as of the
date of this press release. We assume no obligation to update or
revise any forward-looking statement as a result of new
information, future events or otherwise.
In this press release, forward-looking statements can be
identified by words such as "believe," "expect," "intend,"
"anticipate," "contemplate," "plan," "estimate," "project,"
"forecast," "envision," "should," "could," "would," "will,"
"confident," "may," "can," "potential," "possible," "proposed," "in
process," "construct," "develop," "opportunity," "preliminary,"
"initiative," "target," "outlook," "optimistic," "poised,"
"positioned," "maintain," "continue," "progress," "advance,"
"goal," "aim," "commit," or similar expressions, or when we discuss
our guidance, priorities, strategy, goals, vision, mission,
opportunities, projections, intentions or expectations.
Factors, among others, that could cause actual results and
events to differ materially from those expressed or implied in any
forward-looking statement include: decisions, investigations,
inquiries, regulations, denials or revocations of permits,
consents, approvals or other authorizations, and other actions,
including the failure to honor contracts and commitments, by the
(i) U.S. Department of Energy, Comisión Reguladora de Energía, U.S.
Federal Energy Regulatory Commission, U.S. Internal Revenue Service
and other regulatory bodies and (ii) U.S., Mexico and states, counties, cities and other
jurisdictions therein and in other countries where we do business;
the success of business development efforts, construction projects,
acquisitions, divestitures and other significant transactions,
including risks related to (i) being able to make a final
investment decision, (ii) completing construction projects or other
transactions on schedule and budget, (iii) realizing anticipated
benefits from any of these efforts if completed, (iv) obtaining
third-party consents and approvals and (v) third parties honoring
their contracts and commitments; macroeconomic trends or other
factors that could change our capital expenditure plans and their
potential impact on growth; litigation, arbitrations, property
disputes and other proceedings, and changes to laws and
regulations, including those related to tax and trade policy and
the energy industry in Mexico;
cybersecurity threats, including by state and state-sponsored
actors, of ransomware or other attacks on our systems or the
systems of third parties with which we conduct business, including
the energy grid or other energy infrastructure; the availability,
uses, sufficiency, and cost of capital resources and our ability to
borrow money or otherwise raise capital on favorable terms and meet
our obligations, including due to (i) actions by credit rating
agencies to downgrade our credit ratings or place those ratings on
negative outlook, (ii) instability in the capital markets, or (iii)
rising interest rates and inflation; the impact on our ability to
pass through higher costs to customers due to volatility in
inflation, interest and foreign currency exchange rates and
commodity prices; the impact of climate and sustainability
policies, laws, rules, regulations, trends and required
disclosures, including actions to reduce or eliminate reliance on
natural gas, the risk of nonrecovery for stranded assets, and
uncertainty related to emerging technologies; weather, natural
disasters, pandemics, accidents, equipment failures, explosions,
terrorism, information system outages or other events, such as work
stoppages, that disrupt our operations, damage our facilities or
systems, cause the release of harmful materials or fires or subject
us to liability for damages, fines and penalties, some of which may
not be recoverable through insurance or may impact our ability to
obtain satisfactory levels of affordable insurance; the
availability of natural gas, including disruptions caused by
failures in the pipeline system or limitations on the withdrawal of
natural gas from storage facilities; and other uncertainties, some
of which are difficult to predict and beyond our control.
These risks and uncertainties are further discussed in the
reports that Sempra has filed with the U.S. Securities and Exchange
Commission (SEC). These reports are available through the EDGAR
system free-of-charge on the SEC's website,
www.sec.gov, and on Sempra's website,
www.sempra.com. Investors should not rely unduly on any
forward-looking statements.
Sempra Infrastructure and Sempra Infrastructure Partners are
not the same company as San Diego Gas & Electric Company or
Southern California Gas Company, and none of Sempra Infrastructure,
Sempra Infrastructure Partners nor any of its subsidiaries is
regulated by the California Public Utilities Commission.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/sempra-infrastructure-announces-epc-contract-with-bechtel-for-port-arthur-lng-phase-2-302200567.html
SOURCE Sempra Infrastructure
