Sempra LNG & Midstream, a wholly-owned subsidiary of Sempra Energy, plans to build the Port Arthur LNG terminal on 2,842 acres of land in Jefferson County, Texas, US.
The liquefied natural gas (LNG) processing and export facility will receive up to two billion cubic feet of feed gas a day (bcf/d) from multiple interstate and intrastate pipelines via 55km new gas pipeline to be built and owned by Port Arthur Pipeline, another subsidiary of Sempra LNG & Midstream.
With two natural gas liquefaction trains, the LNG facility will produce up to 13.5Mt of LNG a year for export. It will have direct access to the Gulf of Mexico.
Construction on the LNG terminal is expected to begin by 2019, while commissioning is expected by 2023.
Port Arthur is one of the three LNG terminal projects being undertaken by Sempra Energy in North America. The other two projects are the Cameron LNG terminal in Louisiana, US, and the Energia Costa Azul LNG project in Mexico.
Port Arthur LNG project development
Sempra LNG & Mainstream received approval from the US Department of Energy (DoE) to export domestically produced gas to countries that are part of Free Trade Agreement (FTA), in August 2015.
The company filed application with Federal Energy Regulatory Commission (FERC) seeking authorisation to construct and operate the LNG terminal, in November 2016.
Sempra Energy hopes to receive the FERC permission by the end of 2018, while final investment decision (FID) is expected in 2019.
Woodside Energy, a subsidiary of Woodside Petroleum, signed the Project Development Agreement (PDA) for Port Arthur LNG with Sempra LNG & Mainstream in February 2016.
Further, Woodside Energy and Sempra Energy signed a memorandum of understanding (MoU) with Korean Gas Corporation (KOGAS) for the development of the LNG Terminal, in June 2017. KOGAS is the potential purchaser and equity participant in the project.
Sales agreement for Port Arthur LNG terminal
Sempra LNG and Mainstream signed a 20-year fixed sales and purchase agreement for Port Arthur LNG terminal with Polish Oil & Gas Company (PGNiG) in June 2018.
PGNiG will buy 2Mt of LNG a year from the Port Arthur facility, under the agreement.
Port Arthur LNG plant details
Port Arthur LNG facility will comprise two liquefaction trains with a combined production capacity of up to 13.5Mt of liquefied gas a year, and three LNG storage tanks with a storage capacity of 160,000m³ each.
Other facilities of the terminal will include marine facilities for vessel berthing and loading, natural gas liquids and refrigerant storage facility, feed-gas pre-treatment facility, combustion turbine generators for in-situ power generation, and truck loading and unloading areas.
Details of Port Arthur gas pipeline
Port Arthur LNG terminal will import natural gas from a number of US natural gas supply basins through two 55km-long, 42in diameter pipeline segments connected with multiple interstate and intrastate pipelines to the north and south of the LNG facility.
The northern segment of the new natural gas pipeline will run 44km from Vidor, Orange County, Texas, to the Port Arthur LNG facility.
The southern section of the pipeline will stretch 11km from Cameron Parish, Louisiana, to the project site.
The Port Arthur feed gas pipeline will include two compressor stations, one at Allen Parish, Louisiana, and the other at Jefferson County, Texas. Each compressor station will consist of four 22,500HP gas turbines.
Contractors involved with Port Arthur LNG terminal project
Bechtel was selected as the engineering, procurement, construction and commissioning (EPCC) contractor for the Port Arthur LNG terminal project in June 2018.