Port Arthur LNG Files Federal Application To Construct Natural Gas Liquefaction And Export Facilities In TexasNovember 29, 2016 12:00 pm
Sempra Energy (NYSE: SRE) today announced its liquefied natural gas (LNG) subsidiaries have filed applications with the Federal Energy Regulatory Commission (FERC) seeking authorization to site, construct and operate the proposed Port Arthur LNG natural gas liquefaction facility along the Sabine-Neches Waterway in Southeast Texas.
The FERC application for the proposed project includes: two natural gas liquefaction trains capable of producing, under optimal conditions, approximately 13.5 million metric tons per annum in the aggregate or approximately 698 billion cubic feet of natural gas per year; three LNG storage tanks; natural gas liquids and refrigerant storage; feed gas pre-treatment facilities; two berths and associated marine and loading facilities. A separate application was filed with FERC seeking authorization to construct natural gas pipelines to deliver natural gas to the project.
“We are pleased to continue advancing the Port Arthur LNG project,” said Octavio Simoes, president of Sempra LNG & Midstream. “Our experience in developing, building and operating energy infrastructure will help us deliver a cost-competitive project to the global LNG market.”
Sempra LNG & Midstream and Woodside Energy (USA), Inc. signed a project development agreement in February 2016 that provides a framework for the sharing of costs related to the development, technical design, permitting and marketing of the proposed liquefaction project.
Ongoing development of the project is subject to a number of risks and uncertainties and remains contingent upon completing required commercial agreements, acquiring all necessary permits and approvals, securing financing commitments, potential incentives and satisfying other conditions before making a final investment decision to proceed.
Sempra Energy (NYSE: SRE), based in San Diego, is a Fortune 500 energy services holding company with 2015 revenues of more than $10 billion. The Sempra Energy companies’ 17,000 employees serve more than 32 million consumers worldwide.
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energy markets; the timing and extent of changes and volatility in commodity prices; moves to reduce or eliminate reliance on natural gas as an energy source; the impact on the value of our natural gas storage and related assets and our investments from low natural gas prices, low volatility of natural gas prices and the inability to procure favorable long-term contracts for natural gas storage services; risks posed by decisions and actions of third parties who control the operations of investments in which we do not have a controlling interest, and risks that our partners or counterparties will be unable (due to liquidity issues, bankruptcy or otherwise) or unwilling to fulfill their contractual commitments; weather conditions, natural disasters, catastrophic accidents, equipment failures, terrorist attacks and other events that may disrupt our operations, damage our facilities and systems, cause the release of greenhouse gasses, radioactive materials and harmful emissions, and subject us to third-party liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in excess of applicable policy limits) or may be disputed by insurers; cybersecurity threats to the energy grid, natural gas storage and pipeline infrastructure, the information and systems used to operate our businesses and the confidentiality of our proprietary information and the personal information of our customers and employees; the ability to win competitively bid infrastructure projects against a number of strong competitors willing to aggressively bid for these projects; capital markets conditions, including the availability of credit and liquidity of our investments, and inflation, interest and currency exchange rates; disallowance of regulatory assets associated with, or decommissioning costs of, the San Onofre Nuclear Generating Station facility due to increased regulatory oversight, including motions to modify settlements; expropriation of assets by foreign governments and title and other property disputes; the impact on reliability of San Diego Gas & Electric Company’s (SDG&E) electric transmission and distribution system due to increased amount and variability of power supply from renewable energy sources and increased reliance on natural gas and natural gas transmission systems; the impact on competitive customer rates due to the growth in distributed and local power generation and the corresponding decrease in demand for power delivered through SDG&E’s electric transmission and distribution system; the impact on customer rates and other adverse consequences due to possible departing retail load resulting from customers transferring to Direct Access and Community Choice Aggregation; the inability or determination not to enter into long-term supply and sales agreements or long-term firm capacity agreements due to insufficient market interest, unattractive pricing or other factors; and other uncertainties, all of which are difficult to predict and many of which are beyond our control.
These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission. These reports are available through the EDGAR system free-of-charge on the SEC’s website, www.sec.gov, and on the company’s website at www.sempra.com. Investors should not rely unduly on any forward-looking statements. These forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to update or revise these forecasts or projections or other forward-looking statements, whether as a result of new information, future events or otherwise.
Sempra International, LLC, Sempra U.S. Gas & Power, LLC, and Sempra Partners, LP, are not the same companies as the California utilities, San Diego Gas & Electric (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra International, LLC, Sempra U.S. Gas & Power, LLC, and Sempra Partners, LP, are not regulated by the California Public Utilities Commission. Sempra International’s underlying entities include Sempra Mexico and Sempra South American Utilities. Sempra U.S. Gas & Power’s underlying entities include Sempra Renewables and Sempra Natural Gas.