Sempra Infrastructure Partners, a subsidiary of North America’s energy infrastructure company Sempra, has reached a final investment decision (FID) for the second stage of its liquefied natural gas (LNG) project under development in Jefferson County, Texas.
With the FID out of the way, Sempra can advance the development, construction, and operation of Port Arthur LNG Phase 2 . This will entail the addition of two natural gas liquefaction trains, one LNG storage tank, and associated facilities with a nameplate capacity of approximately 13 million tonnes per annum (Mtpa).
Phase 2 will double the project’s capacity, as Port Arthur LNG Phase 1 , which is currently under construction , also has a 13-mtpa capacity. The first stage also comprises two trains (Train 1 and 2), two LNG storage tanks, and associated facilities.
Phase 1 is a joint venture project between Sempra Infrastructure and ConocoPhillips and has long-term, fully subscribed capacity with ConocoPhillips, RWE Supply and Trading, PKN Orlen, INEOS, and Engie.
Phase 2 is estimated to have incremental project capital expenditures of over $12 billion, on top of an approximate $2 billion payment for shared common facilities, for a total of $14 billion. Commercial operations for Train 3 are expected to start in 2030 and for Train 4 in 2031.
As disclosed by Sempra, funding for Phase 2 is supported by an equity investment led by Blackstone Credit & Insurance, together with an investor consortium including KKR, Apollo-managed funds, and Private Credit at Goldman Sachs Alternatives.
These investors have acquired a 49.9% minority equity interest for $7 billion, with Sempra Infrastructure Partners retaining a 50.1% majority stake in the project.
In addition to securing 100% equity financing, Sempra Infrastructure Partners has announced a full notice to proceed with Bechtel Energy . The company was picked to participate in Phase 1 and recently chosen to undertake engineering, procurement, and construction (EPC) for Phase 2 .
20-year offtake deals for the project’s Phase 2 have been secured with ConocoPhillips , JERA , and most recently, EQT .
In addition to the FID, Sempra reported reaching an agreement to sell a 45% equity interest in Sempra Infrastructure Partners to affiliates of KKR, with Canada Pension Plan Investment Board (CPP Investments).
As explained, transaction proceeds of $10 billion imply an equity value of $22.2 billion and an enterprise value of $31.7 billion for Sempra Infrastructure Partners. The transaction is expected to close in Q2 or Q3 2026, subject to regulatory and other approvals and closing conditions.
Once the deal is finalized, a KKR-led consortium will own 65% of Sempra Infrastructure Partners. Sempra will retain a 25% interest, and Abu Dhabi Investment Authority (ADIA) its existing 10% stake. The deal envisages Sempra and ADIA having certain minority rights in Sempra Infrastructure Partners.
“Over the past four years, we have developed a close relationship with the Sempra Infrastructure Partners team and a deep understanding of their business,” said Raj Agrawal , Global Head of Real Assets at KKR. “We are excited to grow this strategic partnership and are pleased to welcome CPP Investments alongside us as we work to expand Sempra Infrastructure Partners’ assets to help meet growing global demand for energy.”
Sempra believes the transaction will help boost its credit profile and eliminate the need for equity issuances in the previously announced 2025-2029 capital plan, among other things.