Port Arthur LNG Receives Federal Authorization For Liquefaction-Export Project In Texas
FERC permit is one of the last major regulatory approvals needed before final investment decision
Apr 18, 2019
SAN DIEGO, April 18, 2019 /PRNewswire/ -- Sempra Energy (NYSE:SRE) today announced that its subsidiary, Port Arthur LNG, LLC, received authorization from the Federal Energy Regulatory Commission (FERC) to site, construct and operate its natural gas liquefaction-export facility under development in Jefferson County, Texas.
"With today's FERC order and the commercial momentum of the Port Arthur LNG project, we are one step closer to reaching a final investment decision and delivering low-cost, reliable and clean U.S. natural gas to world markets," said Carlos Ruiz Sacristán, chairman and CEO of Sempra North American Infrastructure. "Port Arthur LNG should help us achieve our goal to become one of the largest exporters of North American liquefied natural gas (LNG). We are grateful to all of our stakeholders for supporting this important infrastructure project that is expected to create thousands of jobs and provide economic benefits for years to come."
The Port Arthur LNG project is expected to include two liquefaction trains, up to three LNG storage tanks and associated facilities that will enable the export of approximately 11 million tonnes per annum (Mtpa) of LNG. The FERC order also approved the construction of the Texas and Louisiana connector pipeline projects that will provide natural gas transportation for the new liquefaction facilities.
In December 2018, Port Arthur LNG and the Polish Oil & Gas Company signed a definitive 20-year sale-and-purchase agreement for two Mtpa of LNG from the Port Arthur LNG project, subject to certain conditions. Last year, Sempra LNG selected Bechtel as the engineering, procurement, construction and commissioning contractor for the project, subject to reaching a definitive agreement.
Port Arthur LNG received authorization from the Department of Energy (DOE) in August 2015 to export domestically produced natural gas to countries with which the U.S. has free trade agreements and has a pending application to export natural gas to non-free trade agreement countries.
Development of the Port Arthur LNG project is contingent upon obtaining additional customer commitments, completing the required commercial agreements, securing all necessary permits, obtaining financing, incentives and other factors, and reaching a final investment decision.
Sempra LNG develops, builds and invests in natural gas liquefaction facilities and is pursuing the development of five strategically located LNG projects in North America with a goal of delivering 45 Mtpa of clean natural gas to the largest world markets, making Sempra Energy one of North America's largest developers of LNG export facilities.
Sempra Energy's mission is to be North America's premier energy infrastructure company. With 2018 revenues of more than $11.6 billion, the San Diego-based company is the utility holding company with the largest U.S. customer base. The Sempra Energy companies' more than 20,000 employees are focused on delivering energy with purpose to approximately 40 million consumers worldwide. Sempra Energy has been consistently recognized for its leadership in diversity and inclusion, social responsibility and investment value, and is a member of the Dow Jones Utility Index.
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Sempra LNG and Port Arthur LNG, LLC are not the same as the California Utilities, San Diego Gas & Electric Company (SDG&E) or Southern California Gas Company (SoCalGas), or Oncor Electric Delivery Company LLC (Oncor) and are not regulated by the California Public Utilities Commission.
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