Sempra Energy’s Port Arthur LNG hits another milestone

In another important milestone for a proposed LNG project in Port Arthur, Sempra Energy got the green light to start exporting liquefied natural gas from its 13.5 million metric-ton Texas terminal.

The U.S. Department of Energy officially gave San Diego’s Sempra Energy approval to U.S.-produced liquefied natural gas to countries that do not have a free-trade agreement with the U.S..

The approval to export to non-free trade agreement countries is vital for American LNG operators that want to tap into Asian markets where demand for LNG is expected to swell.

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U.S. Secretary of Energy Rick Perry said Sempra can export 1.91 billion cubic feet per a day from its docks in Port Arthur about 90 miles east of Houston.

“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,” Perry said in a statement.

The Port Arthur LNG export would include two liquefaction plants known as trains, up to three LNG storage tanks and associated facilities. The project is expected to create 3,500 construction jobs and 200 full-time permanent jobs once the terminal is operating in 2023.

“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 U.S. as a global leader in LNG exports.”

The Department of Energy authorization comes on the heels another key permitting milestone for Port Arthur LNG when last month the Federal Energy Regulatory Commission to site, construct and operate the liquefaction project.

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Sempra Energy will make a final investment decision on the project this year. Bechtel is the engineering, procurement and construction contractor .In December 2018, Port Arthur LNG and the Polish Oil & Gas Company signed a definitive 20-year sale-and-purchase agreement for 2 million metric tons of LNG.

Sempra Energy is also building an LNG project in Baja, Mexico that also recently received a key authorization from the Department of Energy. It’s also developing Cameron LNG facility in Hackberry, Louisiana.

Headquartered in San Diego, Sempra reported $11.6 billion of revenues in 2018. The company employs more than 20,000 people and serves more than 40 million customers around the world.

_{Source: houstonchronicle.com}