San Diego-based energy company and LNG operator Sempra Energy has pushed back its decision on the Port Arthur LNG project.
To remind, in March this year, Sempra Energy tagged the contractor Bechtel for a turn-key EPC deal. As a result of the deal, Bechtel will perform the detailed engineering, procurement, construction, commissioning, startup, performance testing of the project. It will also provide operator training activities for the project in Jefferson County, Texas.
However, Sempra noted in its quarterly report that given the current market dynamics, it has pushed the final investment decision back to 2021.
The Port Arthur LNG development project will initially include two liquefaction trains and two liquefied natural gas (LNG) storage tanks. Additionally, it will feature a marine berth and associated loading facilities and related infrastructure necessary to provide liquefaction services. The project will have a nameplate capacity of approximately 13.5 million tonnes per annum (mtpa) of LNG.
The company is continuing to work with its current and potential customers on the optimal timing for the project.
To remind, Sempra signed an interim project participation agreement (IPPA) with Saudi Aramco for the project. The deal follows a heads of agreement from May 2019. The deal is for 5 (mtpa) of LNG as well as a 25 per cent equity investment in the project.
The company added it will continue to be disciplined on how it allocates capital to the project. Sempra posted a jump in profit from $441 million in the first quarter of 2019, to $760 million in Q1 2020.