Sempra Seeks Permits for Major LNG Expansion Project in Texas

Illustration (Credit: Sempra Infrastructure)

Sempra Energy's unit Port Arthur LNG has started the federal permitting process for a major expansion of its liquefied natural gas export operations in Southeast Texas, according to a regulatory filing made on Wednesday.

The proposed Port Arthur LNG North Project would add four liquefaction trains capable of producing up to 27 million metric tons per annum (mtpa) of LNG, significantly expanding the company's export footprint on the U.S. Gulf Coast, the filing showed.

According to the filing, each train would be capable of producing up to 6.73 mtpa of LNG under optimal conditions. The project would also include three LNG storage tanks and marine facilities with up to two LNG berths for loading cargoes onto tankers.

If approved and constructed, the project could begin exporting LNG in the second half of 2034, the filing showed. The facilities would be built on land already owned by Port Arthur LNG, the filing said.

Sempra is already developing Port Arthur Phase 1 and Phase 2, with a combined capacity of 26 mtpa.

The proposal marks the latest effort by U.S. developers to capitalize on growing global demand for LNG as countries seek long-term supplies of the fuel for power generation and industrial use.

The United States is the world's largest LNG exporter, and developers have proposed dozens of expansion projects along the Gulf Coast in recent years.

The proposed north project would substantially increase total export capacity and reinforce Southeast Texas' position as one of the world's largest LNG export hubs.

The company did not provide an estimated cost for the project in the filing.

(Reuters - Reporting by Curtis Williams in Houston; Editing by Muralikumar Anantharaman and Subhranshu Sahu)