The Trump Administration Grants Final LNG Export Approval to Sempra Infrastructure’s Port Arthur LNG Phase 2 Project
After campaigning on a promise to accelerate the U.S. energy industry, the Trump administration issued its first final LNG export approval to Sempra Infrastructure’s proposed Port Arthur LNG Phase 2 project. This permit, granted by the Department of Energy, will allow the project to export LNG to countries without a free-trade agreement with the United States.
The Trump administration has criticized its predecessor’s pause on LNG export permits, calling it “reckless.” Following the finalization of the 2024 LNG Export Study, which supports the economic benefits of LNG exports, the Department of Energy (DOE) is actively supporting the expansion of the industry.
The Port Arthur LNG facility is set to become one of the largest LNG export facilities in North America. Phase II of the project, which includes two liquefaction trains capable of producing 13 Mtpa of LNG, will double the facility’s total liquefaction capacity to 26 Mtpa.
Phase 1 of the Port Arthur LNG project is currently under construction, with commercial operation for train 1 expected in 2027 and train 2 in 2028.
DOE considers the approval of Phase 2 as a crucial step in expanding the U.S. LNG industry. However, Sempra acknowledges that the project faces risks and uncertainties, such as securing commercial agreements, permits, financing, and reaching the final investment decision.
Sempra also operates the Cameron LNG export terminal in Louisiana and is constructing the Energia Costa Azul terminal in Mexico.
Key Findings from the LNG Export Study:
- The U.S. has a robust natural gas supply to support increased exports.
- LNG exports benefit the economy, job market, and trade balance.
- Increasing LNG exports contribute to domestic and international security.
- LNG exports have minimal impact on global greenhouse gas emissions.
The approval for Port Arthur Phase 2 adds to the four previous LNG export authorizations issued by the administration, totaling 11.45 Bcf/d in approved exports.
While the U.S. currently leads in LNG exports, Qatar is gearing up to expand its production with the North Field Expansion project, aiming to double production by 2030.