Wedoany.com Report-Sept. 24, Sempra Infrastructure Partners, a subsidiary of Sempra, announced a final investment decision for the second phase of its liquefied natural gas (LNG) project in Jefferson County, Texas. This milestone enables the development, construction, and operation of Port Arthur LNG Phase 2, which will feature two liquefaction trains, one LNG storage tank, and supporting facilities, with a capacity of approximately 13 million tonnes per annum (Mtpa).

Port Arthur LNG construction site

Phase 2 will double the facility’s output, complementing Phase 1, which is under construction with a similar 13 Mtpa capacity, including two trains and two storage tanks. Phase 1 operates as a joint venture with ConocoPhillips, with long-term contracts secured with ConocoPhillips, RWE Supply and Trading, PKN Orlen, INEOS, and Engie.

The capital investment for Phase 2 is estimated at over $12 billion, plus $2 billion for shared infrastructure, totaling $14 billion. Commercial operations are expected to start for the third train in 2030 and the fourth in 2031. A $7 billion equity investment from a group led by Blackstone Credit & Insurance, including KKR, Apollo-managed funds, and Goldman Sachs Alternatives’ Private Credit, secures a 49.9% stake, with Sempra Infrastructure retaining 50.1%.

Sempra Infrastructure has authorized Bechtel Energy, previously involved in Phase 1, to handle engineering, procurement, and construction for Phase 2. Long-term 20-year offtake agreements have been signed with ConocoPhillips, JERA, and EQT.

Additionally, Sempra agreed to sell a 45% stake in Sempra Infrastructure Partners to affiliates of KKR and Canada Pension Plan Investment Board for $10 billion, implying an equity value of $22.2 billion and an enterprise value of $31.7 billion. The transaction, expected to close in the second or third quarter of 2026, pending approvals, will see a KKR-led group holding 65%, Sempra 25%, and Abu Dhabi Investment Authority maintaining its 10% stake, with Sempra and ADIA retaining certain minority rights.

Raj Agrawal, Global Head of Real Assets at KKR, stated: “Over the past four years, we have developed a close relationship with the Sempra Infrastructure Partners team and a deep understanding of their business. We are excited to grow this strategic partnership and are pleased to welcome CPP Investments alongside us as we work to expand Sempra Infrastructure Partners’ assets to help meet growing global demand for energy.”

This deal is anticipated to enhance Sempra’s financial stability, supporting its capital plan through 2029 without additional equity issuances.