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Sempra’s Port Arthur LNG project receives non-FTA exports authorisation

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Tanks and Terminals,

US Secretary of Energy Rick Perry today signed the Department of Energy's authorisation allowing Sempra Energy's Port Arthur LNG to export approximately 13.5 million tpy of US-produced LNG to countries that do not have a free-trade agreement (FTA) with the US during the first US-EU Energy Council High-Level Energy Forum in Brussels, Belgium.

"I am pleased to announce the order signed today authorising Port Arthur LNG to export up to 1.91 billion ft3/d of LNG, to any country that does not have an FTA with the United States," said Perry. "The United States is in its third consecutive year as a net exporter of natural gas, now exporting domestic LNG to 35 countries. I applaud the American private sector for continuing to reach new milestones and look forward to continued growth in this sector."

The Port Arthur LNG export project in development in Jefferson County, Texas is expected to include two liquefaction trains, up to three LNG storage tanks and associated facilities.

"Today's approval marks a major regulatory step for the development of Port Arthur LNG that would allow LNG to be exported from Port Arthur to all European, Asian and other markets around the world," said Carlos Ruiz Sacristán, chairman and CEO of Sempra North American Infrastructure. "Port Arthur LNG is one of Sempra Energy's five LNG-export projects under development that we believe will help to further establish the US as a global leader in LNG exports."

Port Arthur LNG is expected to create approximately 3500 on-site engineering and construction jobs, as well as several hundred jobs in Texas in support of the project, including fabrication and operational jobs. Nearly 200 full-time jobs will be created to operate and maintain Port Arthur LNG facility.

Last month, Port Arthur LNG received authorisation from the Federal Energy Regulatory Commission to site, construct and operate the liquefaction project. In December 2018, Port Arthur LNG and the Polish Oil & Gas Company signed a definitive 20-year sale-and-purchase agreement for 2 million tpy of LNG from the Port Arthur LNG project, subject to certain conditions. Bechtel has been selected as the engineering, procurement, construction and commissioning contractor for the project, subject to reaching a definitive agreement.

Development of the Port Arthur LNG project is contingent upon obtaining additional customer commitments, completing the required commercial agreements, obtaining financing, incentives and other factors, as well as reaching a final investment decision.

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