US power and gas utility Sempra Energy has announced that the first phase of its proposed Port Arthur liquefied natural gas (LNG) export terminal will move ahead with investment firm KKR & Co agreeing to a minority stake in the project.
Sempra Infrastructure Partners, the 70%-owned unit of Sempra, would target 20% to 30% of indirect ownership interest in the project, subject to the closing of the KKR sale.
Additionally, Sempra Infrastructure announced the closing of the project’s $6.8 billion (€6.3 billion) non-recourse debt financing and the issuance of the final notice to proceed under the project’s engineering, procurement and construction agreement.
Sempra’s unit has also finalised its joint venture with ConocoPhillips. The US oil producer in November 2022 had said it would acquire a 30% non-controlling interest in the Port Arthur Phase 1 project in Texas through the JV.
Sempra estimates the total capital expenditure for the 13.5-million tonnes per annum (MTPA) plant’s Phase 1 at $13 billion (€12.5 billion).
ConocoPhillips, units of Poland’s Polski Koncern Naftowy Orlen SA, INEOS, ENGIE and Germany’s RWE AG would together buy about 10.5 MTPA LNG from the Port Arthur plant under long-term agreements.
