Sempra delays Port Arthur LNG FID to 2021

May 4, 2020
Sempra Energy has delayed final investment decision on its 13.5-million tonne/year (tpy) Port Arthur LNG liquefaction plant from third-quarter 2020 to 2021 due to current market dynamics.

Sempra Energy has delayed final investment decision on its 13.5-million tonne/year (tpy) Port Arthur LNG liquefaction plant from third-quarter 2020 to 2021 due to current market dynamics. Earlier in 2020, Port Arthur LNG LLC and Bechtel Oil, Gas, and Chemicals Inc. signed a fixed-price EPC contract for Sempra’s Port Arthur LNG liquefaction project under development in Jefferson County, Tex. (OGJ Online, Mar. 3, 2020).

Infraestructura Energética Nova SAB de CV (IEnova), Sempra’s subsidiary in Mexico, meanwhile is actively monitoring market dynamics but, as a result of the current pandemic, Sempra said it is reasonable to expect some of its construction capital to be deferred to 2021 from 2020. IEnova and Sempra LNG are seeking to add liquefaction to the existing Energia Costa Azul regasification terminal in Ensenada, Baja California, Mexico. The project is being developed in two phases with an initial 2.4-million tonne/year Phase 1.

Sempra recently announced that Cameron LNG has reached final commissioning of the 14.95-million tpy Phase 1 of its liquefaction-export project in Hackberry, La., as the third of three liquefaction trains achieved mechanical completion, introduced feed gas, and initiated start-up. The project remains on track to produce LNG from the third and final Phase 1 train in second-quarter 2020 and begin commercial operations in third-quarter 2020.

Cameron LNG began commercial operations of Train 1 and Train 2 in August 2019 and February 2020, respectively.

Sempra indirectly owns 50.2% of Cameron LNG. Cameron LNG is jointly owned by affiliates of Sempra LNG, Total SA., Mitsui & Co. Ltd., and Japan LNG Investment LLC, a company jointly owned by Mitsubishi Corp. and Nippon Yusen Kabushiki Kaisha.

Sempra Energy earned $760 million in first-quarter 2020, compared with first-quarter 2019 earnings of $441 million.