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3w ago

Sempra Approves Port Arthur LNG Phase 2, Sells 45% Infrastructure Stake for $10 Billion

Capital recycling positions the company to prioritize U.S. regulated utilities.

Plants surround the logo of energy infrastructure company Sempra Infrastructure during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Photo
Port Arthur LNG construction site; Source: Sempra Infrastructure via LinkedIn
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Signage is seen in the reception of CPP Investments' Toronto offices, on Thursday, Sept. 21, 2023. THE CANADIAN PRESS/Chris Young

Overview

  • Sempra Infrastructure reached final investment decision on Port Arthur LNG Phase 2, a roughly $14 billion build that adds two trains and one storage tank for about 13 Mtpa of new capacity.
  • Commercial operations are targeted for Train 3 in 2030 and Train 4 in 2031, doubling the site’s total nameplate capacity to approximately 26 Mtpa once both phases are operating.
  • Investors led by Blackstone Credit & Insurance acquired a 49.9% minority interest in Phase 2 for $7 billion, with Sempra Infrastructure retaining a 50.1% stake, and Bechtel received full notice to proceed on EPC work.
  • Sempra agreed to sell a 45% stake in Sempra Infrastructure Partners to affiliates of KKR and CPPIB for $10 billion, implying a $22.2 billion equity value and $31.7 billion enterprise value for the unit.
  • Closing of the stake sale is expected in Q2–Q3 2026, after which a KKR-led consortium would own 65% of Sempra Infrastructure Partners, Sempra 25%, and ADIA 10%, as the company maintains 20-year offtake deals with ConocoPhillips, JERA and EQT for Phase 2.