Sempra expects next US LNG permit in first half of 2025

Biden’s permit pause likely cut short by US election result

Trump’s victory may lead to quicker Department of Energy permits

Expected FID on Port Arthur expansion moves ahead of Cameron

HOUSTON(ICIS)–Just hours after the US re-elected former US President Donald Trump on 5 November, US LNG export plant developer Sempra Infrastructure updated expectations around the timing of its next federal LNG permit.

The second phase of Sempra’s Texas project Port Arthur LNG should receive authorization to export to countries outside the US Free Trade Agreement (FTA) from the Department of Energy (DOE) in the first half of 2025, Sempra executives said 6 November.

“LNG is a very, very important tool of American foreign policy,” said Jeffrey Martin, CEO of Sempra Infrastructure’s parent company, during its third-quarter earnings call.

“I think we have growing confidence in getting the permits we need for Port Arthur, phase two in the first half of next year.”

No US LNG export projects have received a non-FTA permit from the DOE since 2023.

In January, current President Joe Biden’s administration paused issuance of the permits.

While campaigning, Trump said that if elected, he would immediately lift the pause on federal LNG permitting.

France’s Technip Energies previewed the electoral result during its third-quarter earnings call on 31 October with CEO Arnaud Pieton’s statement that a Trump victory could faster lift the moratorium on DOE permits than if opponent Kamala Harris had won.

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Of the two expansion projects under development – the 13mtpa second phase of Port Arthur LNG, and a fourth production train at Cameron LNG that would add 6.75mtpa – CFO Karen Sedgwick said the company expects to make an FID on Port Arthur’s phase two first.

“The timing of an FID decision on the Cameron expansion is uncertain at this point,” Sedgwick said. “We continue to work with our partners on the optimal timing for expansion.”

Previously, the Cameron expansion FID was delayed in November 2022 and November 2023 .

Port Arthur’s 13mtpa second phase requires the non-FTA permit to reach a final investment decision, in addition to lining up more long-term customers and securing financing.

The expansion project has been under consideration since at least November 2022.

Saudi Arabia’s state-backed Aramco agreed in June to purchase 5mtpa from Port Arthur’s second phase over 20 years, and that it would consider taking a 25% stake in the project.

In August, Sempra Infrastructure CEO Justin Bird said the company hoped to have additional heads of agreements to discuss on Sempra’s Q3 call.

“As noted in our Q2 call, we saw an increased interest in Port Arthur 2, and I’m happy to say that interest has further increased since the call and momentum continues to build,” Bird said.

“Commercial discussions for offtake and project equity are ongoing, and I think we’re seeing better terms.”

CONSTRUCTION UPDATES

Construction at Sempra’s Energia Costa Azul LNG export project faced delays due to local workforce shortages in Sonora, Mexico, executives said in August. In the latest call, Sempra stuck with its most recent estimate that ECA would start commissioning in spring 2026.

Sempra hired engineering company TechnipFMC in 2020 to handle engineering, procurement and construction for ECA with a lump-sum contract. Technip Energies split off from TechnipFMC in 2021.

Rival EPC contractor Bechtel leads construction on Port Arthur LNG’s first phase – also 13mtpa – which remains on budget and on schedule, executives said 6 November.