Sempra Infrastructure Signs Major LNG Supply Agreement with JERA for Port Arthur LNG Phase 2 Project

Sempra Infrastructure, a subsidiary of North America’s energy infrastructure company Sempra, has inked a multi-year deal with Japan’s JERA for the supply of liquefied natural gas (LNG) from the second phase of its LNG export terminal in Port Arthur, Southeast Texas, United States.

The agreement, spanning over 20 years, will see Sempra Infrastructure providing 1.5 million tonnes per annum (mtpa) of LNG to JERA on a free-on-board basis from the Port Arthur LNG Phase 2 project in Jefferson County. This deal solidifies the commitment of both companies to energy security and a sustainable future through long-term LNG supply.

Justin Bird, CEO of Sempra Infrastructure, stated, “This agreement establishes a long-term relationship with JERA and confirms Sempra Infrastructure’s dedication to customers in Japan and the wider Asian market, ensuring their access to affordable and secure U.S. natural gas.”

The Port Arthur LNG Phase 1 project, currently under construction, includes trains 1 and 2, two LNG storage tanks, and related facilities. The targeted commercial operation timelines for train 1 and train 2 are 2027 and 2028, respectively.

The proposed Port Arthur LNG Phase 2 project, with all key permits in place, is set to feature two liquefaction trains capable of producing approximately 13 mtpa of LNG, potentially doubling the total liquefaction capacity of the facility to about 26 mtpa.

Following regulatory approvals, Sempra Infrastructure engaged Bechtel for engineering, procurement, and construction services. The project also received the green light from the U.S. Department of Energy for LNG exports to non-free-trade agreement countries.

While the Port Arthur LNG Phase 2 project is progressing, it is subject to finalizing commercial agreements, obtaining financing, and reaching a final investment decision. Sempra has hinted at early development stages for future phases.

Ryosuke Tsugaru, Chief Low Carbon Fuel Officer for JERA, emphasized, “This agreement signifies a strategic partnership with Sempra Infrastructure and reinforces our commitment to securing a reliable, long-term LNG supply. The addition of flexible LNG volumes enhances our ability to navigate the evolving global energy landscape.”