Sempra Reaches Final Investment Decision on $12 Billion Port Arthur LNG Expansion

In a major step for U.S. liquefied natural gas (LNG) exports, Sempra announced a final investment decision (FID) for Phase 2 of its Port Arthur LNG project, a $12 billion expansion that significantly strengthens the Gulf Coast’s role in the global energy market.

The FID, disclosed on September 23, marks the official green light for construction of two additional liquefaction trains at the Port Arthur site in Texas. Once completed, the expansion will double the terminal’s export capacity to approximately 26 million tonnes per annum (mtpa), positioning it among the largest LNG export hubs in the United States.

Sempra’s decision to proceed with the second phase of the project reflects rising global demand for U.S. LNG, especially from Europe and Asia, as nations seek to diversify energy supplies and reduce dependence on Russian gas. The expansion also aligns with Sempra’s long-term growth strategy to enhance North American energy infrastructure while supporting energy security for global markets.

The Phase 2 expansion follows the successful FID on Phase 1, which is already under construction with operations expected to begin by 2027. Sempra has reported significant progress on site development, and the new trains will be built adjacent to existing infrastructure, leveraging economies of scale and streamlining project execution.

Sempra Infrastructure, a subsidiary of Sempra, is spearheading the project through a partnership-driven model. The company is actively negotiating commercial agreements and finalizing equity partnerships to support the financing structure for Phase 2. While exact offtake commitments for the new trains were not disclosed, market analysts suggest strong interest from international buyers, particularly in Asia.

In a related move, Sempra announced a $10 billion deal to sell a minority stake in its infrastructure platform to private investors. This strategic capital infusion will further support expansion initiatives like Port Arthur LNG while enhancing shareholder value and maintaining balance sheet strength.

The Port Arthur project has received full regulatory approval and enjoys significant local and state-level support, given its potential to generate thousands of jobs and billions in economic impact. Construction of Phase 2 is expected to begin by early 2026, with commercial operations projected for the early 2030s.

With this latest milestone, Sempra positions itself at the forefront of the U.S. LNG boom, advancing both domestic energy production and global supply chain resilience. As geopolitical shifts continue to shape energy markets, the Port Arthur expansion underscores the strategic importance of American LNG on the world stage.

For the energy industry, investors, and global customers, Sempra’s FID represents a critical inflection point—one that signals confidence in long-term LNG demand and a clear commitment to infrastructure-led growth.