Port Arthur LNG Phase 1 project : Sempra Infrastructure finalizes sale of 42% stake to KKR

Sempra Infrastructure, a subsidiary of Sempra, has completed the sale of a 42% indirect, non-controlling interest in its Port Arthur LNG Phase 1 project in Southeast Texas to investment firm KKR. The transaction results in Sempra Infrastructure holding a 28% controlling interest in the project’s first phase, with ConocoPhillips retaining the remaining 30% stake. The terms of the transaction were previously disclosed and have closed as planned.

“The completion of this transaction is a landmark moment, signifying the forward momentum of our world-class Port Arthur LNG facility,” stated Justin Bird, CEO of Sempra Infrastructure. “This strategic deal paves the way for Sempra Infrastructure to access capital for future growth and reiterates our commitment to global decarbonization and energy security.”

James Cunningham, Partner at KKR, shared similar sentiments. “We’re thrilled to finalize our investment in this critical energy infrastructure project, led by the exceptional Sempra Infrastructure team. The Port Arthur LNG Phase 1 project has maintained strong progress and aligns with our objectives of supporting energy security and cleaner energy supply.”

Sempra Infrastructure reached a positive final investment decision for the Port Arthur LNG Phase 1 project in March 2023 and has since contracted Bechtel Energy Inc., a global engineering, procurement, and construction firm, to spearhead the construction. Over 2.8 million work hours have already been clocked since construction began this spring, with no lost-time incidents reported. The commercial operation dates for the two trains of the Port Arthur LNG Phase 1 project are expected to be 2027 and 2028, respectively.