On March 15, 2024, the Port Arthur LNG Phase 1 project held an official groundbreaking celebration at the project site in Port Arthur, Texas. While the project broke ground shortly after Sempra Infrastructure issued a positive final investment decision (FID) nearly one year ago, this event marked a significant advancement in the Port Arthur LNG Phase 1 project, underscoring Sempra Infrastructure’s role in contributing to the energy transition, serving increasing global energy demand, providing a secure and reliable source of natural gas for U.S. allies, as well as the project’s positive impacts on the local community and economy.

The gathering of distinguished guests included partners, customers, government officials, community leaders, and employees. The celebration highlighted the collaborative spirit that has been central in reaching this juncture, as well as the project’s commitments to safety, sustainability, and innovation in LNG technology. Most importantly, the event served to reaffirm Sempra Infrastructure’s commitment to environmental stewardship and community investments.

Justin Bird, CEO of Sempra Infrastructure and Executive Vice President at Sempra, spoke at the event to share his vision for the future, emphasizing the strategic importance of the Port Arthur LNG Phase 1 project in the global energy transition. He also shared how this project is set to enhance energy reliability and security, particularly for U.S. allies, while providing a cleaner alternative to traditional hydrocarbons.

“We each have a part to play to ensure that the transition to a lower-carbon future is well-managed, that affordability and reliability are not sacrificed in the pursuit of sustainability,” said Bird. “We can do that by ensuring companies are able to launch timely projects to meet today’s growing energy demand. Port Arthur LNG Phase 1 is uniquely positioned to meet the moment, as it underpins world-class, low-carbon opportunities proximal to the facility, enabling the region to serve as a flagship hub for the energy transition."

Tania Ortiz Mena, President of Sempra Infrastructure, underscored the critical role the local community has played in reaching this milestone in the project’s construction. She highlighted the project's significant role in bolstering the local economy through local hiring and procurement initiatives, as well as social investment partnerships with nonprofits, schools and community-based organizations throughout Jefferson County, with a focused commitment toward workforce readiness and development programs.

“Without the local community leaders and support from the community, Port Arthur LNG would not be the successful project that it is,” said Ortiz Mena. “Today I want to reiterate our commitment to each of you to be a good neighbor, support the local economy through local procurement and local hiring, and reaffirm our commitment to continued social investment to ensure the community is a better place because we are here.”

The event also served as a platform for acknowledging the project's key contributors, including Brendan Bechtel, Chairman and CEO of Bechtel, the engineering, procurement and construction company which has been instrumental in making sure the project remains within budget and on schedule.

Together, Sempra Infrastructure and Bechtel have hired more than 1,000 construction and office staff in the past year. More than 580 of those hired are local to the greater Port Arthur area. In addition, Bechtel has more than 100 local vendors for the project, totaling more than $160 million in local contracts.

About Port Arthur LNG Phase 1

The Port Arthur LNG Phase 1 project, located in Southeast Texas with direct access to the Gulf of Mexico, represents a significant infrastructure investment in the global energy market by facilitating the transition from heavier fossil fuels including coal and fuel oil, to more sustainable energy sources. The project is positioned to enhance the reliability and security of U.S. liquefied natural gas (LNG) supply to international markets, contributing to the global shift away from more carbon-intensive hydrocarbons.

The Port Arthur LNG Phase 1 facility is designed with a nameplate LNG production capacity of 13 million tonnes per annum (Mtpa) and features two state-of-the-art natural gas liquefaction trains and two LNG storage tanks.

The financial commitment to the Port Arthur LNG Phase 1 project is substantial, with total capital expenditures estimated at $13 billion. This investment reflects the project's strategic importance to the energy sector and its potential to drive economic growth.

Port Arthur LNG Phase 1 project capacity is largely committed, with approximately 10.5 Mtpa secured through binding long-term agreements with prominent global companies ConocoPhillips, RWE Supply and Trading, PKN ORLEN S.A., INEOS, and ENGIE S.A. These agreements indicate the project's critical role in supporting global energy strategies.

The projected timelines for the commencement of commercial operations for Train 1 and Train 2 are set for 2027 and 2028, respectively.

In an effort to further enhance and build upon the benefits of the Port Arthur Phase 1 project, Sempra Infrastructure is currently developing a second phase of the Port Arthur LNG facility, Port Arthur LNG Phase 2. The proposed Phase 2 project could increase the total liquefaction capacity of the facility from approximately 13 Mtpa to approximately 26 Mtpa. The proposed project is also expected to include an additional LNG storage tank and marine berth and would benefit from some of the common facilities currently under construction that were previously approved as part of the Port Arthur LNG Phase 1 permitting process.

Sempra Infrastructure continues to evaluate opportunities to develop the entirety of the Port Arthur site while also exploring potential projects to reduce the carbon intensity of its LNG, positioning Port Arthur as a flagship hub for the energy transition, with the combined proposed projects forming the company’s proposed Port Artur Energy Hub.

To further the advancement of the Port Arthur Energy Hub, the company recently announced the proposed Titan Carbon Sequestration project, which targets capturing carbon from Sempra Infrastructure’s Port Arthur LNG Phase 1 and 2 projects and has the potential to unlock other net-zero energy infrastructure opportunities, including a potential hydrogen project. The hub also includes the proposed Port Arthur Pipeline Texas Connector project, the proposed Post Arthur Pipeline Louisiana Connector project and the development of new gas storage facilities, all of which would serve the Port Arthur LNG facility. This comprehensive development approach utilizes Sempra Infrastructure’s broad development and operational expertise to enhance the total value of Port Arthur and can deliver significant value for the local community, opening up substantial avenues for economic growth opportunities for the region.

Development of the Port Arthur LNG Phase 2 project, the Titan Carbon Sequestration project, the proposed Port Arthur Pipeline Louisiana Connector project, proposed Port Arthur Texas Connector project and new gas storage facilities is contingent upon completing the required commercial agreements, securing and/or maintaining all necessary permits, obtaining financing, and reaching a final investment decision, among other factors.

As we move forward, the groundbreaking celebration of the Port Arthur LNG facility commemorates not just the commencement of construction but the laying of a foundation for a sustainable energy future. It is a testament to Sempra Infrastructure’s collective vision, resilience, and commitment to excellence and to the project’s role as a cornerstone in the energy transition.

About Sempra Infrastructure

Sempra Infrastructure, headquartered in Houston, is focused on delivering energy for a better world by developing, building and operating, and investing in clean power, energy networks, and LNG and net-zero solutions that are expected to play a crucial role in the energy systems of the future. Through the combined strength of its assets in North America, Sempra Infrastructure is connecting customers across the globe to modern energy infrastructure to source and transport renewables and natural gas, while advancing carbon sequestration and clean hydrogen.