Sempra Infrastructure and JERA Co. Inc. have signed a long-term supply agreement for LNG offtake from the proposed Port Arthur LNG Phase 2 development project in Jefferson County, Tex.
Under the 20-year sale and purchase agreement, Sempra will supply 1.5 million tonnes/year (tpy) of LNG to JERA on a free-on-board basis.
Photo from Cheniere Energy Inc. 1Q25 investor presentation
This agreement, which builds on JERA’s plan to secure LNG supply for Japan and the greater Asian market, builds upon a non-binding heads of agreement signed between the companies in June 2025. Last month, Japan's largest power company noted a number of agreements signed with operators including Sempra, Cheniere, Commonwealth,and NextDecade, that aimed to secure up to 5.5 million tpy of LNG from US suppliers.
In its release July 31, Sempra said the proposed Port Arthur LNG Phase 2 project is under active marketing. Development of Phase 2 remains subject to certain conditions, including completing commercial agreements, securing and/or maintaining necessary permits, obtaining financing, and reaching a final investment decision, among other factors.
The project has received all key permits and is expected to include two liquefaction trains capable of producing about 13 million tpy of LNG, which could increase the total liquefaction capacity of the Port Arthur LNG plant to up to 26 million tpy.
Most recently, the project received authorization in May 2025 from the US Department of Energy to export US LNG to countries that do not have a free-trade agreement with the US.
The Port Arthur LNG Phase 1 project, which is currently under construction, is expected to achieve commercial operation in 2027 and 2028 for trains 1 and 2, respectively.
Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was named Managing Editor - News in 2019. She holds a degree from Texas Tech University.
