Sempra Infrastructure Partners has reached a final investment decision (FID) on Phase 2 of its Port Arthur LNG export terminal in Texas, a $14 billion expansion that will double the project’s capacity and cement its role in global gas markets.
The new phase will add two liquefaction trains, one storage tank and supporting facilities with a nameplate capacity of about 13 million tonnes a year. Train 3 is expected online in 2030, followed by Train 4 in 2031. Together with Phase 1, the facility will deliver 26 Mtpa, making it one of the largest LNG projects in North America.
Phase 1, under construction as a joint venture between Sempra Infrastructure and ConocoPhillips, also has two trains and two storage tanks. Capacity has already been sold under long-term contracts to ConocoPhillips, RWE Supply & Trading, PKN Orlen, INEOS and Engie.
Phase 2 will require $12 billion in incremental spending plus $2 billion for shared common facilities. Funding is fully secured through $7 billion in equity from a consortium led by Blackstone Credit & Insurance, with participation from KKR, Apollo-managed funds and Goldman Sachs Alternatives. The investors will hold a 49.9% stake, while Sempra Infrastructure Partners retains 50.1%.
EPC Contractor
Bechtel Energy, already building Phase 1, received full notice to proceed on Phase 2. It will handle engineering, construction and project management. Sempra said it will leverage lessons from the first phase to cut execution risk and deliver better economics.
ConocoPhillips — the anchor offtaker — along with EQT, JERA Co. and Sempra Infrastructure Partners have subscribed all of Phase 2’s 13 Mtpa under 20-year sales and purchase agreements. Sempra may add more contracts in line with industry practice.
The decision highlights the value of Sempra’s LNG business even as the parent company shifts focus toward regulated U.S. utilities. With both phases, Port Arthur LNG is on track to become one of the country’s most significant export hubs by the next decade.
The expansion marks the second major energy project announced in Port Arthur this month, following Entergy’s $1.6B Legend power station.
Fact Sheet — Port Arthur LNG Phase 2 Expansion
Location: Jefferson County, Texas
Scope: 2 liquefaction trains (Trains 3 & 4), 1 LNG storage tank, associated facilities
Capacity: 13 Mtpa (doubles project to 26 Mtpa with Phase 1)
Capex: $12B incremental + $2B shared facilities = $14B
Timeline: Train 3 operational 2030; Train 4 operational 2031
Ownership:
49.9% — Blackstone Credit & Insurance–led consortium (KKR, Apollo, Goldman Sachs Alternatives)
50.1% — Sempra Infrastructure Partners
Financing: 100% equity financed; $7B minority stake acquired by investors
EPC Contractor: Bechtel Energy (engineering, construction, project management); full notice to proceed granted
Offtake Contracts (20 years): ConocoPhillips (anchor), EQT, JERA Co., Sempra Infrastructure Partners
Phase 1: 13 Mtpa capacity; JV with ConocoPhillips; long-term contracts with ConocoPhillips, RWE, PKN Orlen, INEOS, Engie; under construction
