On the Gulf Coast of Texas, hundreds of local workers are laying the groundwork for the Port Arthur Energy Hub, a collection of energy infrastructure development projects that represent the future of global energy. Together, the various projects comprising the Port Arthur Energy Hub are designed to meet rising energy demand throughout the world, to improve energy security for American allies and to advance environmental stewardship – all while creating new jobs and supporting the local community.

The Port Arthur LNG Phase 1 project, which is currently under construction, is anticipated to deliver approximately 13 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) to customers around the globe in order to help replace coal and fuel oils for electricity generation and industrial uses, as well as to provide access to affordable energy in emerging markets.

The proposed Port Arthur LNG Phase 2 expansion will double export capacity at the site and is already attracting interest from global markets eager for America’s support in their efforts to reduce emissions and enhance power reliability.

For instance, Sempra and Aramco recently announced a heads of agreement contemplating a 20-year sale and purchase agreement for 5 Mtpa of LNG offtake from the proposed Port Arthur LNG Phase 2 project and Aramco’s 25% participation in the project-level equity of Phase 2. If executed, this agreement could help advance the shared goals of the U.S. and Saudi Arabia, as reflected in recent bilateral discussions on energy cooperation between the two countries.

Meeting the triple-threat challenges of energy reliability, energy security and emissions reduction requires collaboration across geographies, political boundaries and industry sectors. Sempra Infrastructure is eager to do its part through the Port Arthur Energy Hub.

Local Communities, Global Impacts

Since 2015, when development of the Port Arthur LNG Phase 1 project began, Sempra Infrastructure has invested more than $3 million to support nonprofits, schools and other community-based organizations throughout Jefferson County. In April 2023, the company announced a $500,000 commitment toward workforce readiness and development programs. This commitment was matched by Bechtel, the EPC contractor for the Phase 1 project, for a total of $1 million.

These funds are being used to bolster local partnerships in workforce readiness, with a focus on job training and skills development efforts designed not only to upskill local residents, but also to enable Sempra Infrastructure to attract, retain, develop and engage superior local talent as the facility becomes operational.

In addition to the company’s commitment to creating positive social investments, Sempra Infrastructure is also committed to utilizing the talent and capabilities of the Port Arthur community, through hiring local when possible and utilizing local suppliers to support the project, which bolsters the Port Arthur economy even further. At just over one year into construction, the project has hired more than 1,000 jobs, with more than 580 of those roles filled by greater Port Arthur area talent for jobs ranging from office workers, field workers, construction workers and management. Moreover, the Port Arthur LNG Phase 1 project also has more than 100 local vendors and suppliers providing goods and services to the project, at a value of more than $160 million.

Port Arthur LNG Phase 1 is expected to have 6,000 jobs at the peak of construction and create approximately 200 permanent jobs in the Port Arthur community. The Port Arthur LNG Phase 2 project is expected to build on this success and commitment to the local community, adding an additional 3,500 construction jobs and an additional 60 permanent jobs.

“We are a proud community partner and are committed to investing time, talent and resources to help improve the quality of life for our neighbors and employees in Port Arthur and the surrounding area,” said Justin Bird, CEO of Sempra Infrastructure. “Our active involvement in the Port Arthur community is fundamental to the success of our Port Arthur LNG Phase 1 project and potential Phase 2 project, and it is underpinned by our company value to ‘do the right thing.’ We are also committed to positively impacting the community through rigorous safety programs and environmental initiatives, all aimed at improving safety for our employees and the local community.”

These local opportunities combine with positive global impacts that advance an American agenda that promotes energy security, energy reliability and a transition to a cleaner energy future, by displacing heavier fuels used in power generation and industrial purposes, such as coal and fuel oil.

Capacity from the Port Arthur LNG Phase 1 project is fully subscribed by U.S. allies in Europe, who are all focused on energy security in an era of increasing geopolitical instability. The proposed Phase 2 expansion is expected to help expand this global reach and offer optionality to emerging markets.

An Integrated Approach to the Energy Transition

The development of the Port Arthur LNG Phase 2 project would be an integral part of the proposed Port Arthur Energy Hub, which also includes a series of related development projects that, if they proceed through final investment decision and into operations, could help lower the carbon intensity of the LNG the company exports to customers around the globe. This holistic development approach is designed to position Port Arthur as a flagship hub that leverages the integrated capabilities of Sempra Infrastructure’s business lines to allow the company to continue building energy systems for the future.

A number of projects and opportunities could potentially play a pivotal role in reducing the carbon intensity of the LNG value chain. These developments include Sempra Infrastructure’s proposed Titan Carbon Sequestration project and its participation in the HyVelocity Gulf Coast Hydrogen Hub, which was selected as a regional hydrogen hub by the U.S. Department of Energy for up to $1.2 billion in funding for its collective development by a network of hydrogen producers, consumers and connective infrastructure.

Delivering Energy for a Better World

With renewable generation, energy networks, and LNG export projects on both the Gulf Coast and Pacific Coast of North America, Sempra Infrastructure is well positioned to help meet the world’s changing energy needs and improve energy security globally. “We believe energy is essential to modern life and that is why we are investing in the infrastructure needed to advance energy reliability and security,” said Bird. Together with our partners in business and government, we can continue delivering energy for a better world.

###

This article contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions about the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed or implied in any forward-looking statement. These forward-looking statements represent our estimates and assumptions only as of the date of this article. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise.

In this article, forward-looking statements can be identified by words such as “believe,” “expect,” “intend,” “anticipate,” “contemplate,” “plan,” “estimate,” “project,” “forecast,” “envision,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “construct,” “develop,” “opportunity,” “preliminary,” “initiative,” “target,” “outlook,” “optimistic,” “poised,” “positioned,” “maintain,” “continue,” “progress,” “advance,” “goal,” “aim,” “commit,” or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations.

Factors, among others, that could cause actual results and events to differ materially from those expressed or implied in any forward-looking statement include: decisions, investigations, inquiries, regulations, denials or revocations of permits, consents, approvals or other authorizations, and other actions, including the failure to honor contracts and commitments, by the (i) U.S. Department of Energy, Comisión Reguladora de Energía, U.S. Federal Energy Regulatory Commission, U.S. Internal Revenue Service and other regulatory bodies and (ii) U.S., Mexico and states, counties, cities and other jurisdictions therein and in other countries where we do business; the success of business development efforts, construction projects, acquisitions, divestitures and other significant transactions, including risks related to (i) being able to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) realizing anticipated benefits from any of these efforts if completed, (iv) obtaining third-party consents and approvals and (v) third parties honoring their contracts and commitments; macroeconomic trends or other factors that could change our capital expenditure plans and their potential impact on growth; litigation, arbitrations, property disputes and other proceedings, and changes to laws and regulations, including those related to tax and trade policy and the energy industry in Mexico; cybersecurity threats, including by state and state-sponsored actors, of ransomware or other attacks on our systems or the systems of third parties with which we conduct business, including the energy grid or other energy infrastructure; the availability, uses, sufficiency, and cost of capital resources and our ability to borrow money or otherwise raise capital on favorable terms and meet our obligations, including due to (i) actions by credit rating agencies to downgrade our credit ratings or place those ratings on negative outlook, (ii) instability in the capital markets, or (iii) rising interest rates and inflation; the impact on our ability to pass through higher costs to customers due to volatility in inflation, interest and foreign currency exchange rates and commodity prices; the impact of climate and sustainability policies, laws, rules, regulations, trends and required disclosures, including actions to reduce or eliminate reliance on natural gas, the risk of nonrecovery for stranded assets, and uncertainty related to emerging technologies; weather, natural disasters, pandemics, accidents, equipment failures, explosions, terrorism, information system outages or other events, such as work stoppages, that disrupt our operations, damage our facilities or systems, cause the release of harmful materials or fires or subject us to liability for damages, fines and penalties, some of which may not be recoverable through insurance or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of natural gas, including disruptions caused by failures in the pipeline system or limitations on the withdrawal of natural gas from storage facilities; and other uncertainties, some of which are difficult to predict and beyond our control.

These risks and uncertainties are further discussed in the reports that Sempra has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on Sempra’s website, www.sempra.com. Investors should not rely unduly on any forward-looking statements.

Sempra Infrastructure and Sempra Infrastructure Partners are not the same company as San Diego Gas & Electric Company or Southern California Gas Company, and none of Sempra Infrastructure, Sempra Infrastructure Partners nor any of its subsidiaries is regulated by the California Public Utilities Commission.