Port Arthur LNG scaffolding collapse kills three workers; OSHA, legal probes underway

A fatal workplace accident occurred on April 29, 2025, at the Port Arthur LNG construction site in Texas, where a scaffolding collapse claimed the lives of three workers and injured two others. The incident happened during an overnight shift at approximately 2 a.m. at the Gulf Coast facility, currently being developed by Sempra Infrastructure and constructed by Bechtel Energy. Authorities from Jefferson County confirmed the structure collapsed from a height between 65 and 85 feet.

The deceased workers were identified as Reginald Magee, 41, and Felipe Mendez, 25, both residents of Houston, along with Felix Lopez Sr., 42, from Pearland. All three were employed by Bechtel Energy. Two other workers sustained non-life-threatening injuries and were released after treatment at Christus St. Elizabeth Hospital in Beaumont.

The U.S. Occupational Safety and Health Administration (OSHA) has opened a formal investigation into the collapse. Bechtel has suspended all work at the Port Arthur LNG site and stated that it is fully cooperating with regulators while conducting its internal review. Sempra Infrastructure, which is leading the $13 billion project alongside ConocoPhillips, confirmed that all construction activity remains halted during the investigation.

What Is the Port Arthur LNG Terminal and Why Is It Significant?

The Port Arthur LNG terminal is a flagship natural gas export infrastructure project being built in Jefferson County, Texas. The facility is expected to play a critical role in expanding U.S. LNG export capacity amid growing demand from Europe and Asia. Developed by Sempra Infrastructure—a subsidiary of publicly listed Sempra (NYSE: SRE)—in partnership with ConocoPhillips (NYSE: COP), the first phase of the project includes two liquefaction trains with a capacity of 13.5 million tonnes per annum.

The project also encompasses pipeline infrastructure, marine shipping berths, and two full-containment LNG storage tanks. Following a Final Investment Decision in March 2023, construction commenced under the engineering, procurement, and construction (EPC) contract awarded to Bechtel Energy. At full build-out, the facility is expected to support thousands of jobs and contribute significantly to the local economy, positioning the U.S. as a long-term supplier of natural gas to global markets.

How Did the Scaffolding Collapse Unfold?

According to Jefferson County Sheriff’s Office and preliminary accounts from OSHA, the collapse took place in an elevated section of the worksite where scaffolding had been erected to support ongoing structural work. Witnesses reported that the scaffolding failed under load, causing multiple workers to fall. Two victims died at the site, while a third succumbed to injuries in hospital.

Initial investigation efforts are focused on the structural integrity of the scaffolding, load management, and whether site safety protocols were correctly implemented. OSHA is interviewing crew members and site supervisors and reviewing inspection logs and safety certifications for the temporary structure. Bechtel has committed to reassessing all construction systems currently in use across the site.

Families File Lawsuit Against Sempra, ConocoPhillips, Bechtel

On April 30, the families of the deceased workers, along with a surviving injured worker, filed a wrongful death and injury lawsuit against multiple entities, including Sempra Infrastructure, Port Arthur LNG LLC, ConocoPhillips, and Bechtel Energy. The lawsuit, filed in Jefferson County District Court, alleges gross negligence in scaffolding construction and insufficient fall protection measures.

The plaintiffs are seeking damages for pain and suffering, lost income, medical costs, and funeral expenses. Legal filings suggest that site contractors may have failed to meet federally mandated safety standards, and the complaint points to lapses in pre-shift safety inspections and risk mitigation planning. Legal experts note the outcome could influence safety policies for similar large-scale LNG construction projects nationwide.

How Has the Energy Construction Sector Reacted?

The incident has sparked widespread concern within the energy infrastructure and construction community. Former Port Arthur LNG employees and trade union representatives expressed sorrow and called for an industry-wide review of scaffold safety practices. Taylor Mitchell, a former Bechtel crew member, described the tight-knit camaraderie among workers and said that jobsite risks, especially at heights, demand greater oversight.

Advocates are now urging mandatory third-party scaffolding inspections, particularly for high-risk construction zones. The case also raises questions about how responsibility is divided between developers like Sempra and ConocoPhillips and on-site contractors like Bechtel, particularly in joint-venture projects involving multiple stakeholders.

Impact on Sempra and ConocoPhillips

Sempra (NYSE: SRE)

Sempra’s share price closed at $69.53 on April 30, 2025, reflecting a modest daily gain of 1.78%. The movement came amid investor caution following the accident but was partially supported by the company’s positive earnings guidance for the year. Sempra recently projected full-year 2025 earnings per share (EPS) between $4.30 and $4.70, with 2026 guidance rising to a range of $4.80 to $5.30—signaling 12% annual growth.

Despite these fundamentals, analysts have tempered expectations. Citigroup lowered its target price for Sempra from $93 to $70 while retaining a “neutral” rating, citing macroeconomic uncertainty and energy price volatility.

On the institutional front, trading activity remains steady with no visible large-scale exits. The dividend increase to $0.645 per share—up from $0.62—has also helped maintain investor confidence, although upcoming OSHA findings may carry reputational risk. Short interest in the stock has remained flat.

Buy/Sell/Hold Tip: Neutral-to-Hold; watch for legal implications and project delays that could affect cash flow forecasts.

ConocoPhillips (NYSE: COP)

ConocoPhillips shares closed at $87.27 on April 30, a 3% drop from the previous session. This followed a downgrade by Bank of America Securities from “Buy” to “Neutral,” largely due to concerns over global oil demand softness and the company’s exposure to macroeconomic downturns.

The incident at Port Arthur added marginal downward pressure amid concerns over reputational risk and potential financial exposure from lawsuits. However, institutional flows have not shown any panic-driven exits. Daily trading volume on the day of the incident stood at 4.8 million shares, well below the 50-day average of 9.7 million—suggesting wait-and-watch sentiment among long-term holders.

By comparison, ExxonMobil and Chevron saw lesser declines of 0.25% and 0.57% respectively on the same day.

Buy/Sell/Hold Tip: Cautious Hold; investors may wish to assess exposure to legal liabilities and broader LNG project implications before re-entering.

Broader Implications for LNG Infrastructure and Construction Safety

The Port Arthur LNG accident reinforces longstanding concerns over safety compliance in high-capex industrial projects. As demand for LNG infrastructure accelerates, developers and contractors must navigate a complex web of safety regulations, labor dynamics, and construction deadlines. Analysts warn that companies involved in these ventures face increasing scrutiny—not only from regulators but from institutional investors monitoring ESG performance and workforce risk exposure.

Bechtel, while not publicly traded, may face reputational scrutiny affecting its procurement prospects. For Sempra and ConocoPhillips, the longer-term impact of this incident will likely depend on regulatory findings, litigation outcomes, and any delays in the project’s timeline or cost structure.