Sempra Energy (NYSE: SRE) today announced it received the Final Environmental Impact Statement (FEIS) from the Federal Energy Regulatory Commission (FERC) to construct the Port Arthur LNG natural gas liquefaction-export project in Jefferson County, Texas, as well as the Texas and Louisiana connector pipeline projects that will deliver natural gas to the new export facility.
“Today’s positive review of our Port Arthur liquefaction-export project and new pipeline projects by the FERC represents a significant step forward as we remain focused on becoming North America’s premier infrastructure company,” said Carlos Ruiz Sacristán, president and CEO of Sempra North American Infrastructure Group. “We appreciate the support we’ve received from regulators and the supporters in Texasand Louisiana. We look forward to delivering a world-class project that will create jobs and support the local economy for decades to come.”
The proposed Port Arthur LNG project is expected to include two natural gas liquefaction trains capable of processing approximately 11 million tonnes per annum (Mtpa) liquefied natural gas (LNG), up to three LNG storage tanks and associated facilities and new natural gas transmission pipelines in Texas and Louisiana.
The FEIS is the final step in the environmental review process before FERC can proceed to issue an order approving the project.
Last month, Port Arthur LNG and the Polish Oil & Gas Company signed a definitive 20-year sale-and-purchase agreement for LNG from the Port Arthur LNG as part of Sempra Energy’s long-term goal of exporting 45 Mtpa of North American LNG to meet the global demand. The agreement is subject to certain conditions, including Port Arthur LNG making a final investment decision.
Last year, Port Arthur LNG selected Bechtel as the engineering, procurement, construction and commissioning contractor for the project, subject to reaching a definitive agreement. In June 2017, Port Arthur signed a Memorandum of Understanding with Korea Gas Corporation for potential participation in the Port Arthur LNG project.
Development of the Port Arthur LNG liquefaction facility is contingent upon obtaining additional customer commitments, completing the required commercial agreements, securing all necessary permits, obtaining financing, incentives and other factors, and reaching a final investment decision.
Sempra Energy, a San Diego-based electric and natural gas infrastructure company with 2017 revenues of more than $11 billion, is the utility holding company with the largest U.S. customer base. The Sempra Energy companies’ approximately 20,000 employees serve more than 40 million consumers worldwide.