Sempra’s Port Arthur Phase 2 Gets Final U.S. Approval to Export LNG

(Reuters) — Sempra's Port Arthur Phase 2 project in Texas has won U.S. approval to export liquefied natural gas to markets in Europe and Asia, the Department of Energy said on May 29.

It was the first final LNG export authorization under U.S. President Donald Trump, who reversed a pause on the approvals that former President Biden had ordered to study economic and environmental impacts of the booming business.

The project "marks a significant expansion of the first phase already under construction - turning more of the liquid gold beneath our feet into energy security for the American people," said U.S. Energy Secretary Chris Wright.

The approval marks another milestone for the proposed Port Arthur LNG Phase 2 development project, as Sempra makes steady progress towards reaching a final investment decision, said Justin Bird, CEO of Sempra Infrastructure, a unit of Sempra Energy.

Since Trump took office, the administration has given conditional approval to Commonwealth LNG's proposed export facility in Cameron Parish, Louisiana, and Venture Global's CP2 project, also in Louisiana, to sell the superchilled gas to markets in Asia and Europe pending final approval from the Federal Energy Regulatory Commission (FERC). The Port Arthur Phase 2 is the first final approval.

Port Arthur LNG Phase 2 still needs a final investment decision (FID). Once completed, it is expected to export 1.91 billion cubic feet per day. Port Arthur Phase 1 is under construction and is expected to begin exporting LNG in 2027.

Sempra also operates the Cameron LNG export terminal in Louisiana, which has been exporting LNG since 2019. It is currently building the Energia Costa Azul terminal in Mexico, which will begin commercial export operations of U.S.-sourced gas as LNG in 2026.

Sempra said this month in an earnings call it expects to make an FID by the end of the year, though uncertainty in the macroeconomic environment may affect the timing of product development.

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