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Sempra Port Arthur Phase 2 receives US approval for LNG export

The Department of Energy announced on Thursday that Sempra’s Port Arthur Phase 2 Project in Texas had won U.S. approval for exporting liquefied gas to Europe and Asia.

The first final LNG export approval was issued by U.S. president Donald Trump. He reversed the pause that former president Biden ordered in order to study the economic and environmental impact of this booming industry.

According to U.S. Secretary of Energy Chris Wright, the project is "a significant expansion of a first phase that was already under construction – turning more liquid gold underneath our feet into energy for the American public."

Justin Bird, CEO, Sempra Infrastructure (a division of Sempra Energy), said that the approval is another important milestone in the development of Port Arthur LNG Phase 2.

Since Trump's election, the administration has granted conditional approval for Commonwealth LNG's proposed LNG export facility in Cameron Parish in Louisiana and Venture Global's CP2 Project, also in Louisiana. These projects will sell supercooled gas to Asian and European markets pending the final approval of the Federal Energy Regulatory Commission. Port Arthur Phase 2 was the first approval.

Port Arthur LNG Phase 2 is still awaiting a final investment determination (FID). It is estimated that the facility will export 1,91 billion cubic feet of LNG per day once it's completed. Port Arthur Phase 1 construction is underway and it is expected that LNG exports will begin in 2027.

Sempra operates Cameron LNG in Louisiana which exports LNG since 2019. Sempra is building the Energia Costa Azul Terminal in Mexico which will start commercial export operations for U.S. gas as LNG by 2026.

Sempra stated in a recent earnings call that it expected to have a final investment decision (FID) by the end the year. However, uncertainty about the macroeconomic climate may impact the timing of product developments. (Reporting and editing by Lisa Shumaker, David Gregorio, Curtis Williams from Houston; Additional reporting by Timothy Gardner)

(source: Reuters)