Sempra Energy Delays FID On Mega-LNG Export Terminal, Port Arthur, TX -- May 5, 2021

Too much too fast?

Link here.  

Sempra Energy expects to delay a final investment decision on its proposed Port Arthur liquefied natural gas export facility in Texas until next year, as it continues to face commercial challenges a year after the pandemic began, CFO Trevor Mihalik says.

The continued impact of the pandemic on global energy markets as well as improving the project's greenhouse gas emissions profile means it is more likely that the FID for Port Arthur LNG "will move to next year," Mihalik said during today's earnings conference call.

While acknowledging strong market fundamentals, CEO Jeff Martin said the size and scope of the 11M mt/year Port Arthur project is a factor in Sempra's decision-making process.

"I don't see any scenario that we would probably take FID without having it fully contracted," Martin said on the call.

The only firm supply deal tied to Port Arthur LNG announced so far is a 2M mt/year sales and purchase agreement signed in 2018 by Poland's PGNiG. 

Still not finalized is a preliminary agreement signed in 2019 for Saudi Aramco to take a 25% stake in Port Arthur LNG and lift 5M mt/year of supply from the facility.