Liquefied natural gas (LNG) has become a cornerstone of global energy security, offering nations a more reliable fuel source while reducing dependence on unstable energy supply chains. Amid complex geopolitical shifts, the United States has solidified its role as a global leader in providing dependable LNG supply and helping countries strengthen their energy resilience.
Against this backdrop, we are proud to announce a positive final investment decision (FID) for Port Arthur LNG Phase 2, which will include two natural gas liquefaction trains, one LNG storage tank, an additional marine berth and associated facilities with a nameplate capacity of approximately 13 million tonnes per annum (Mtpa) of U.S. produced LNG, doubling the terminal’s export capacity to 26 Mpta. Estimated incremental capital expenditures for the project is approximately $12 billion, plus an additional $2 billion for shared common facilities. Train 3 is expected to begin commercial operations in 2030 and Train 4 in 2031. This represents the largest LNG investment in Texas announced in 2025.
“Reaching a positive FID for the Port Arthur LNG Phase 2 project marks a decisive milestone not only for Sempra Infrastructure, but for the entire Port Arthur community and the Texas Gulf Coast,” said Justin Bird, CEO of Sempra Infrastructure. “By building on the strong foundation laid by Phase 1 that is currently under construction, we are amplifying economic opportunity, creating thousands of skilled jobs and delivering lasting benefits that will impact the entire Gulf Coast region. Our commitment to operational excellence will help this project safely drive sustainable growth and help shape the future of global energy markets for decades to follow.”
A Cornerstone of American Energy Infrastructure
Strategically located with access to abundant natural gas resources and direct access to the Gulf Coast, the expanded Port Arthur LNG facility will reinforce America’s position as a reliable energy supplier to allies worldwide. Phase 1 is progressing construction on time and on budget to reach commercial operations for Train 1 in 2027 and Train 2 in 2028.
Building on this foundation, Phase 2 has drawn strong international interest from customers seeking to secure U.S. energy to drive economic stability, support industrial growth and reduce exposure to global market volatility. The project is backed by a structured equity investment led by Blackstone, with Sempra Infrastructure retaining majority ownership. To date, Phase 2 has secured long-term offtake under 20-year sale and purchase agreements (SPAs) with ConocoPhillips, JERA, EQT and Sempra Infrastructure, extending Port Arthur LNG’s reach across Europe and Asia.
To construct the facility, we have contracted Bechtel Energy Inc., a global leader in engineering, construction and project management. Bechtel has received full notice to proceed, continuing its role from Port Arthur LNG Phase 1 into Phase 2. We believe this continuity will enhance outcomes by building on efficiencies and insights gained across both phases. Moreover, Bechtel will be able to apply lessons learned from the construction of Phase 1 to Phase 2, with a strong focus on promoting safety at the site and mitigating impacts on the local community.
“At Port Arthur LNG, we are proud to be delivering essential energy infrastructure while remaining focused on building safely and responsibly,” said Paul Marsden, president of Bechtel’s Energy business. “As we move into Phase 2 together with Sempra Infrastructure, Bechtel remains committed to creating jobs across the U.S. Gulf Coast, strengthening America’s role in energy security, and supporting local communities.”
Powering the Global Economy Starts Locally
We believe that global progress should deliver real, lasting value to local communities. That’s why our approach is rooted in strategic investments in both infrastructure and people, so that the Texas Gulf Coast can remain a world-class hub for energy.
“The Port Arthur LNG Phase 2 project is a major step forward for our city. It not only strengthens our position as an energy leader but also creates new opportunities for our residents and businesses. We are committed to ensuring that this growth translates into real benefits for Port Arthur families today and for generations to come,” said Charlotte Moses, Mayor of Port Arthur.
From the moment construction began on Port Arthur LNG Phase 1, we have leveraged the exceptional talent and expertise of the region. We have supported our local work force—many with deep family and community ties—to drive progress on-site, build careers through stable, well-paying jobs and gain new opportunities for skills development.
Since 2015, Sempra Infrastructure has invested over $3.4 million in nonprofits, schools, and community-based organizations in Jefferson County. Phase 2 is expected to continue this long-term commitment to improving quality of life and supporting local institutions, supported by approximately $20 million in anticipated social investments through 2030.
With Phase 1 expected to create 6,000 construction jobs at peak construction and approximately 200 permanent positions in Jefferson County, the expansion is projected to add another 2,000 construction jobs and approximately 50 permanent roles. Phase 2 is a long-term investment in the Gulf Coast’s workforce and infrastructure, reinforcing its importance to the nation’s energy future.
“The Port Arthur LNG Phase 2 expansion is another milestone in Jefferson County’s long history of energy leadership since the Spindletop boom in 1901,” said Jeff Branick, Jefferson County Judge. “By adding new liquefaction capacity along our regional waterway, the expansion further solidifies our position as the largest LNG exporter and will continue our proud legacy of powering progress for tomorrow.”
In addition to job creation, Port Arthur LNG is delivering measurable economic benefits. More than 300 local vendors are supplying goods and services valued at over $600 million which will continue to grow as Phase 2 begins construction. And over the first 15 years, the combined phases are projected to contribute billions to the economy through new employment, increased business activity and tax revenues.
“Port Arthur LNG Phase 2 represents the kind of economic development that can create a meaningful difference in our community. Beyond direct job creation, this expansion will strengthen our entire business ecosystem—from small local suppliers to major service providers. Port Arthur LNG’s continued investment demonstrates confidence in our community’s capabilities and our bright economic future,” said Joe Tant, CEO of The Greater Port Arthur Chamber of Commerce.
This dual commitment of powering global energy while uplifting local communities reflects our role in America’s energy leadership strategy and our commitment to helping ensure that global success creates lasting local benefits.
Looking Ahead
With construction readiness, full equity financing, long-term commercial agreements in place and its strategic location along the Gulf Coast, Port Arthur LNG Phase 2 is poised to become a cornerstone of U.S. LNG export capacity. The project not only helps support domestic economic growth and job creation but also enhances the country’s role as a reliable energy partner to U.S. allies worldwide. At the heart of this progress is the workforce—the men and women of the Texas Gulf Coast—whose dedication and expertise make it possible to power America’s energy future.
With our Port Arthur LNG Phase 2 expansion project, we continue to further our vision of delivering energy for a better world.
This article contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the date of this article. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise.
In this article, forward-looking statements can be identified by words such as “believe,” “expect,” “intend,” “anticipate,” “contemplate,” “plan,” “estimate,” “project,” “forecast,” “envision,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “construct,” “develop,” “opportunity,” “preliminary,” “initiative,” “target,” “outlook,” “optimistic,” “poised,” “positioned,” “maintain,” “continue,” “progress,” “advance,” “goal,” “aim,” “commit,” or similar expressions, or when we discuss our guidance, priorities, strategies, goals, vision, mission, projections, intentions or expectations.
Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include: decisions, audits, investigations, inquiries, regulations, denials or revocations of permits, consents, approvals or other authorizations, and other actions, including the failure to honor contracts and commitments, by the (i) U.S. Department of Energy, Comisión Nacional de Energía, U.S. Federal Energy Regulatory Commission, U.S. Internal Revenue Service and other regulatory bodies and (ii) U.S., Mexico and states, counties, cities and other jurisdictions therein and in other countries where we do business; the success of business development efforts, construction projects, acquisitions, divestitures and other significant transactions, including risks related to (i) being able to make a final investment decision, (ii) negotiating pricing and other terms in definitive contracts, (iii) completing construction projects or other transactions on schedule and budget, (iv) realizing anticipated benefits from any of these efforts if completed, (v) obtaining regulatory and other approvals and (vi) third parties honoring their contracts and commitments; changes to our capital expenditure plans and their potential impact on growth; changes, due to evolving economic, political and other factors, to (i) trade and other foreign policy, including the imposition of tariffs by the U.S. and foreign countries, and (ii) laws and regulations, including those related to tax and the energy industry in the U.S. and Mexico; litigation, arbitration, property disputes and other proceedings; cybersecurity threats, including by state and state-sponsored actors, of ransomware or other attacks on our systems or the systems of third parties with which we conduct business, including the energy grid or other energy infrastructure; the availability, uses, sufficiency, and cost of capital resources and our ability to borrow money or otherwise raise capital on favorable terms and meet our obligations, which can be affected by, among other things, (i) actions by credit rating agencies to downgrade our credit ratings or place those ratings on negative outlook, (ii) instability in the capital markets, and (iii) fluctuating interest rates and inflation; the impact on our ability to pass through higher costs to customers due to volatility in inflation, interest and foreign currency exchange rates and commodity prices and the imposition of tariffs; the impact of climate policies, laws, rules, regulations, trends and required disclosures, including actions to reduce or eliminate reliance on natural gas, the risk of nonrecovery for stranded assets, and uncertainty related to emerging technologies; weather, natural disasters, pandemics, accidents, equipment failures, explosions, terrorism, information system outages or other events, such as work stoppages, that disrupt our operations, damage our facilities or systems, cause the release of harmful materials or fires or subject us to liability for damages, fines and penalties, some of which may not be recoverable through insurance or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of natural gas, including disruptions caused by failures in the pipeline and storage systems or limitations on the injection and withdrawal of natural gas from storage facilities; and other uncertainties, some of which are difficult to predict and beyond our control.
These risks and uncertainties are further discussed in the reports that Sempra has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC’s website, www.sec.gov, and on Sempra’s website, www.sempra.com. Investors should not rely unduly on any forward-looking statements.
Sempra Infrastructure and Sempra Infrastructure Partners are not the same company as San Diego Gas & Electric Company or Southern California Gas Company, and none of Sempra Infrastructure, Sempra Infrastructure Partners nor any of its subsidiaries is regulated by the California Public Utilities Commission.
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