off-the-wire

Sempra reaches final investment decision on Port Arthur LNG plant's Phase 1

Kitco Media
By Reuters
Published:
Updated:
Reuters
March 20 (Reuters) - Sempra Energy said on Monday its unit has reached a final investment decision (FID) for Phase 1 development of the Port Arthur liquefied natural gas (LNG) export plant in Texas. It has also agreed to sell an indirect stake in the project to KKR & Co Inc .


Sempra estimates the total capital expenditure for the 13.5-million tonnes per annum (MTPA) plant's Phase 1 at $13 billion.


Under the agreement, an infrastructure fund managed by KKR will buy a 25% to 49% indirect, non-controlling interest in the project. Sempra's unit, Sempra Infrastructure Partners, would target 20% to 30% of indirect ownership interest in the project, subject to the closing of the KKR sale. The 70%-owned unit of Sempra has also finalized its joint venture with ConocoPhillips . ConocoPhillips has acquired a 30% non-controlling interest in the project through the joint venture. The oil producer also agreed to purchase 5 MTPA of LNG from the project under a 20-year deal in November last year.


Along with ConocoPhillips, buyers of Port Arthur LNG include units of Poland's Polski Koncern Naftowy Orlen SA , INEOS, ENGIE and Germany's RWE AG .


(Reporting by Ankit Kumar; Editing by Shilpi Majumdar)

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