Sempra Infrastructure announces final EPC contract with Bechtel for Port Arthur LNG

Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE) (BMV: SRE), today announced that Port Arthur LNG and Bechtel Energy have amended and restated the fixed-price engineering, procurement and construction (EPC) contract, for the proposed Phase 1 liquefaction project under development in Jefferson County, Texas. The amended contract includes an updated price of approximately $10.5 billion.

"We are excited to achieve this milestone with Bechtel. The execution of the final contract is a critical step in advancing Phase 1 of Port Arthur LNG toward a final investment decision," said Justin Bird, CEO of Sempra Infrastructure. "Based on robust customer interest, we know that Port Arthur LNG is highly attractive to the global market and we look forward to providing customers with access to secure, abundant and reliable U.S. LNG."

"We are delighted to continue our partnership with Sempra Infrastructure to deliver cleaner and more affordable energy to communities around the world. Alongside Sempra Infrastructure, Bechtel is ready to continue active construction in the Gulf Coast and bring more opportunities to the local region," added Paul Marsden, president of Bechtel Energy.

Under the EPC contract, Bechtel will perform the detailed engineering, procurement, construction, commissioning, startup, performance testing and operator training activities for Phase 1 of the project.

The Port Arthur LNG Phase 1 project is permitted and expected to include two natural gas liquefaction trains and LNG storage tanks, and associated facilities capable of producing, under optimal conditions, up to approximately 13.5 million tonnes per annum of LNG. A similarly sized Port Arthur LNG Phase 2 project is also competitively positioned and under active marketing and development.

Earlier this year, Sempra Infrastructure announced the substantial completion of marketing for Phase 1 of the proposed Port Arthur LNG Project with the signing of a series of non-binding agreements with the Polish Oil & Gas Company (PGNiG), RWE Supply & Trading, INEOS Energy Trading Ltd., and ConocoPhillips.

Development of Phase 1 and Phase 2 of the Port Arthur LNG project is contingent upon completing the required commercial agreements, securing all necessary permits, obtaining financing, and reaching an affirmative final investment decision, among other factors.

Eni begins providing additional deliveries of LNG to the Panigaglia terminal ahead of the 2022-2023 winter

As part of its plan to strengthen and diversify gas supplies to Italy, Eni has begun providing additional volumes of liquefied natural gas to the regasification terminal of Panigaglia (La Spezia) ahead of the 2022-2023 winter.

The first cargo was delivered on Sunday with supplies coming from Angola, reloaded on smaller ships at Spanish terminals for them to be compatible with the terminal in Liguria. Further LNG deliveries from Egypt and Algeria are also expected in October.

The overall contribution of additional LNG volumes to Italy, thanks to the availability of regassification terminals currently under development, will exceed 2 billion cubic meters between 2022 and 2023. It will progressively reach 7 billion cubic meters between 2023 and 2024, and will exceed 9 billion cubic meters between 2024-2025, in addition to further supplies to be delivered via pipeline.