GLNG: Sempra likely to push Port Arthur LNG FID back to 2022

Sempra Energy said last week that it would likely delay the final investment decision (FID) on its proposed Port Arthur LNG export terminal in Texas to 2022.
If this happens, it would be the second delay after Sempra initially pushed back the FID from 2020 to 2021 as a result of market uncertainty caused by the coronavirus (COVID-19) pandemic.
The continuing impacts of the pandemic were cited again this time around, with Sempra also saying that it was working with partners and customers to reduce Port Arthur’s greenhouse gas (GHG) emissions profile and enhance its competitiveness in the context of the energy transition. As a result of this work and the pandemic, it is “more likely” that the FID will come next year, Sempra’s executive vice-president and chief financial officer, Trevor Mihalik, said on the company’s earnings call.
The first phase of Port Arthur LNG would have a capacity of 13.5mn tonnes per year (tpy) from two liquefaction trains. In September 2020, it was reported that state-owned Saudi Aramco was reviewing its earlier preliminary decision to buy a 25% stake in the facility. Aramco had also agreed to a preliminary basis to buy LNG from the project over a 20-year period. However, the pandemic has resulted in the Middle Eastern company reconsidering some of its investment plans.
Meanwhile, Sempra is continuing the construction of its Energía Costa Azul (ECA) LNG project in Mexico, which was sanctioned last year. It was the only LNG export project to reach FID in 2020.