Port Arthur FID subject to customer demand: Sempra

The timing of the final investment decision (FID) on US firm Sempra's planned Port Arthur LNG export terminal will be driven by customer demand, the company has said.

Sempra already delayed the funding decision for Port Arthur to 2021, which it still targets, from the third quarter this year due to the weak economic environment caused by the Covid-19 outbreak.

The firm also has yet to take an FID on its planned 2.5mn t/yr Energia Costa Azul (ECA) liquefaction facility and has pushed back the decision for two consecutive quarters, after initially expecting to reach an FID by the end of last year. Securing funding for the terminal is "subject to receiving a Mexican export permit", Sempra said. The process was delayed as the Mexican government halted permitting processes because of the virus, but the firm on 5 August said it is "working closely" with Mexican officials to confirm the permit.

Sempra also received a force majeure claim from two firms in relation to its storage contract at the Costa Azul import facility, with one of the firms, Shell, asserting that a 2019 amendment to its storage contract resulted in a force majeure and a violation of its contractual rights. The firm believes that these "allegations are meritless" and has notified the customers that they "are in breach of their obligations". The FID date of the ECA export facility will not be affected by the arbitration proceedings launched by one of the two firms, Sempra said.

And the third 5mn t/yr train at the Cameron export terminal in the US state of Louisiana is due to start commercial operations "in the coming days", Sempra said, with the train reaching "substantial completion on 31 July". The US' Federal Energy Regulatory Commission approved the train to enter long-term service on 24 July. The first and second trains, which also have a capacity of 5mn t/yr each, entered service in August 2019 and February, respectively.

By Ellie Holbrook