Sempra's Port Arthur LNG Phase 2 Progressing Faster Than Cameron LNG Expansion, CFO Says

(Reuters) — Sempra Infrastructure's Port Arthur LNG Phase 2 project development is running ahead of its Cameron LNG expansion in Louisiana, finance chief Karen Sedgwick said on Wednesday.

The Port Arthur project in Texas is advancing faster due to a continuous construction agreement with contractor Bechtel that runs across both its phases, Sedgwick told investors on a conference call.

Talks on LNG purchases and equity agreements for the project are ongoing, she said, adding the timing for a financial go-ahead for the Cameron expansion "is uncertain."

Port Arthur Phase 2 could receive its non-Free Trade Agreement export permit early next year, Sedgwick said.

The company is seeing better terms since it signed a 20-year non-binding agreement to supply 5 million metric tons per annum (MTPA) of the super chilled gas to Saudi Aramco and the Saudi giant agreed to take a 25% equity stake in the project, said Sempra Infrastructure CEO Justin Bird.

Port Arthur Phase 2 was one of the projects affected by a decision by President Joe Biden's administration to pause reviews of LNG export permits for economic and environmental reasons.

President-elect Donald Trump has promised to do away with the pause when he takes office in January.

"We have growing confidence in getting the permits we need for Port Arthur Phase 2 in the first half of next year," Sempra CEO Jeffrey Martin said on the earnings call.

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