The US Federal Energy Regulatory Commission (FERC) has granted authorization to Sempra Energy for the construction and operation of the Port Arthur LNG natural gas liquefaction-export project (Port Arthur LNG Project) in southeast Texas.
Sempra Energy said that the FERC permit is one of the last major regulatory approvals required before making a final investment decision on the Port Arthur LNG Project to be built in Jefferson County. The LNG export project is expected to have a capacity of nearly 11 million tons per annum (Mtpa) of liquefied natural gas (LNG).
Earlier this year, the FERC issued the final environmental impact statement (FEIS) for the natural gas liquefaction-export facility. The FEIS was also issued to two connector pipeline projects to be built by Sempra Energy in the states of Texas and Louisiana that will provide natural gas to the new LNG export facility.
Sempra North American Infrastructure chairman and CEO Carlos Ruiz Sacristán said: “With today’s FERC order and the commercial momentum of the Port Arthur LNG project, we are one step closer to reaching a final investment decision and delivering low-cost, reliable and clean U.S. natural gas to world markets.
“Port Arthur LNG should help us achieve our goal to become one of the largest exporters of North American liquefied natural gas (LNG). We are grateful to all of our stakeholders for supporting this important infrastructure project that is expected to create thousands of jobs and provide economic benefits for years to come.”
The Port Arthur LNG Project will comprise two liquefaction trains, each with a capacity of 6.73 million tons per annum of LNG for export. The project will also feature three LNG storage tanks, each having a capacity of 160,000m³, along with other infrastructure.
Last December, Port Arthur LNG, the holding company of the project, signed a 20-year sale-and-purchase agreement with Polish Oil & Gas for two Mtpa of LNG from the project. The agreement will be subject to certain conditions such as a final investment decision reached on the project by Port Arthur LNG.
In June 2018, Bechtel was given an engineering, procurement, construction and commissioning (EPC) contract for the Port Arthur LNG Project, which is targeted to achieve its first LNG production in 2023.