DOE Approves Port Arthur LNG Project

Maritime Activity Reports, Inc.

May 3, 2019

Image: Sempra Energy

Image: Sempra Energy

The U.S. Department of Energy (DOE) announced the signing of a long-term order authorizing the export of domestically produced liquefied natural gas (LNG) from Sempra Energy’s Port Arthur LNG export project to be built in Port Arthur, Texas.  

The U.S. Secretary of Energy Rick Perry signed the authorization allowing Port Arthur LNG to export approximately 13.5 million tonnes per annum (Mtpa) of LNG to countries that do not have a free-trade agreement (FTA) with the U.S. during the first U.S.-EU Energy Council High-Level Energy Forum in Brussels, Belgium.

"I am pleased to announce the order signed today authorizing Port Arthur LNG to export up to 1.91 billion cubic feet per day of LNG, to any country that does not have an FTA with the United States," said Perry. "The United States is in its third consecutive year as a net exporter of natural gas, now exporting domestic LNG to 35 countries. I applaud the American private sector for continuing to reach new milestones and look forward to continued growth in this sector."

The Port Arthur LNG export project in development in Jefferson County, Texas is expected to include two liquefaction trains, up to three LNG storage tanks and associated facilities.  

"Today's approval marks a major regulatory step for the development of Port Arthur LNG that would allow LNG to be exported from Port Arthur to all European, Asian and other markets around the world," said Carlos Ruiz Sacristán, chairman and CEO of Sempra North American Infrastructure. "Port Arthur LNG is one of Sempra Energy's five LNG-export projects under development that we believe will help to further establish the U.S. as a global leader in LNG exports."

Port Arthur LNG is expected to create approximately 3,500 on-site engineering and construction jobs, as well as several hundred jobs in Texas in support of the project, including fabrication and operational jobs. Nearly 200 full-time jobs will be created to operate and maintain Port Arthur LNG facility.

Last month, Port Arthur LNG received authorization from the Federal Energy Regulatory Commission to site, construct and operate the liquefaction project. In December 2018, Port Arthur LNG and the Polish Oil & Gas Company signed a definitive 20-year sale-and-purchase agreement for 2 Mtpa of LNG from the Port Arthur LNG project, subject to certain conditions. Bechtel has been selected as the engineering, procurement, construction and commissioning contractor for the project, subject to reaching a definitive agreement.

Development of the Port Arthur LNG project is contingent upon obtaining additional customer commitments, completing the required commercial agreements, obtaining financing, incentives and other factors, as well as 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.

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