Sempra Energy Delays Port Arthur LNG Project Decision to 2021

By Jason Cockerham

(P&GJ) — Sempra LNG has announced it has postponed a Final Investment Decision (FID) on its Port Arthur LNG project to 2021 due to market uncertainty caused by the coronavirus pandemic. 

Artist Rendering of Phase 1 of the Port Arthur LNG facility Photo: Sempra Energy

Sempra Energy, owner of Sempra LNG, announced the decision during the company’s first quarter earnings call.

Phase 1 of the project is expected to include two liquefaction trains and three storage tanks enabling the facility to export approximately 13.5 Mtpa of LNG on a long-term basis.

Sempra says a potential expansion of the facility could include up to eight trains with approximately 45 Mtpa of capacity.

In May last year, Saudi Aramco signed a 20-year agreement to buy LNG from the facility and also agreed to buy a 25% equity stake in the first phase of the multi-billion-dollar project.

On Thursday Aramco announced it had paused a deal to charter tanker vessels to transport LNG from the Port Arthur facility, Reuters reported a source as saying.

Earlier this year, Sempra signed a fixed price, EPC contract with Bechtel to construct the export terminal.

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