PORT ARTHUR, Texas — A project that would bring new job opportunities and economic growth to Southeast Texas is officially moving forward.
Sempra announced July 2022 that its subsidiary, Sempra Infrastructure, and ConocoPhillips have entered into a new agreement to develop the Port Arthur LNG (PALNG) project.
(EDITOR'S NOTE: The video above is from a July 14, 2022 newscast.)
On March 30, 2023, Sempra Infrastructure Partners reached a positive final investment decision (FID) for the development, construction and operation of the Port Arthur LNG Phase 1 project.
The closing deal of $6.8 billion non-recourse debt financing would allow the project's engineering, procurement and construction agreement to proceed, according to a news release from Sempra Infrastructure.
The agreement creates the framework to build the PALNG along Highway 87, between Port Arthur and Sabine Pass.
Because of this new partnership, Port Arthur will become a key player in the liquified natural gas industry, which is a hot commodity right now due to U.S. exports being shipped on tankers to Europe.
ConocoPhillips has agreed to have a 30% stake in PALNG, which will help pay for infrastructure improvements and eventually, increase production.
Governor Greg Abbott says the decision to make Port Arthur the location for a new natural liquefication and export terminal will further solidify Texas as the energy capital of the world.
"With a highly skilled workforce and business-friendly climate, and as a national leader in LNG exports, Texas is the prime location to expand LNG operations to unleash the United States' full economic potential in such a critical industry," Abbott said in the release. "Expanding LNG is imperative to American energy security, and the State of Texas looks forward to working alongside Sempra to advance this mission and bring more jobs and greater opportunities to hardworking Texans."
Sempra executives hope this 20-year partnership will give the world's energy supply a much needed boost.
Sempra Infrastructure President Dan Brouillette previously said the Port Arthur facility was hand-picked for this investment, due to the community and strong labor force.
"It's one of the best in the country, so it's a very good place to do business. Texas is a great place to do business, so that's very, very attractive for us. The second part is it's proximity for the Gulf of Mexico," Brouillette said.
Total capital expenditures for the Port Arthur Phase 1 project are estimated at $13 billion, according to the release.