Sempra secures LNG export permit for Phase 2 of Texas facility

The U.S. Department of Energy (DOE) has issued a final authorization to Sempra Infrastructure, a subsidiary of North America’s energy infrastructure company Sempra, for the export of liquefied natural gas (LNG) to non-free trade agreement (non-FTA) countries from its facility under development in Jefferson County, Texas.

The permit has cleared the way for exports of approximately 13.5 million tonnes per annum (mtpa) of U.S.-produced LNG from Port Arthur LNG Phase 2 to countries that do not have an FTA with the U.S. 

According to DOE, this is the first final LNG export approval under President Trump’s administration, and the fifth LNG export authorization issued by U.S. Secretary of Energy Chris Wright. The total volume of exports associated with these approvals is said to amount to 11.45 billion cubic feet per day (Bcf/d).  

“Port Arthur LNG Phase II marks a significant expansion of the first phase already under construction—turning more of the liquid gold beneath our feet into energy security for the American people,” said Secretary Wright. “With President Trump’s leadership, the Energy Department is restoring America’s role as the world’s most reliable energy supplier.”  

Sempra sees the non-FTA permit as a major regulatory milestone for the proposed project. The U.S. player believes this could be a way to narrow the country’s trade deficit, and support the energy security goals of U.S. partners worldwide.

“Today’s regulatory approval marks another milestone for the proposed Port Arthur LNG Phase 2 development project, as we make steady progress towards reaching a final investment decision,” said Justin Bird, Chief Executive Officer (CEO) of Sempra Infrastructure.

In June 2024, Sempra Infrastructure and a subsidiary of Aramco signed a non-binding heads of agreement for equity and offtake from the Port Arthur LNG Phase 2 project. The following month, Sempra announced that Bechtel had been given an engineering, procurement, and construction (EPC) contract for the project.

“U.S. LNG exports continue to gain momentum, and I am glad DOE is able to do its part to answer the call for more reliable and affordable energy, at home and abroad,” said Tala Goudarzi, Principal Deputy Assistant Secretary of the Office of Fossil Energy and Carbon Management. 

While this step is a major one, Sempra explained that the development still 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.

The project, which received authorization from the Federal Energy Regulatory Commission (FERC) in September 2023, is expected to include two liquefaction trains capable of producing approximately 13 mtpa of LNG.

This is set to double the total liquefaction capacity of the Port Arthur LNG facility from approximately 13 mtpa for Phase 1, which is currently under construction, to up to approximately 26 mtpa. Additionally, future phases are also said to be in the early development stage.

The Port Arthur LNG Phase 1 project, which is a joint venture project between Sempra Infrastructure and ConocoPhillips, will comprise trains 1 and 2, two LNG storage tanks, and associated facilities. The construction of the project is ongoing, with Train 1 scheduled to come into operation in 20027 and Train 2 in 2028.

Apart from this, the U.S. player operates the Cameron LNG export terminal in Louisiana, which has been exporting LNG since 2019.

Additionally, its Energia Costa Azul (ECA) terminal in Mexico is under construction. In August 2024, the ECA LNG Phase 1 project was said to be 85% complete, with commercial operations scheduled to start in the spring of 2026.