HOUSTON, TEXAS (By Isaac Silvestre, Energy Analytics Institute, 31.Jul.2025, Words: 534) — Sempra subsidiary Sempra Infrastructure announced a 20-year sale and purchase agreement for the supply of 1.5 million tonnes per annum (MTPA) of liquefied natural gas (LNG) offtake from the Port Arthur LNG (PALNG) Phase 2 development project in Jefferson County, Texas.
The LNG will be supplied on a free-on-board (FOB) basis, according to Sempra.
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This agreement marks a major step forward from the non-binding heads of agreement signed in Jun. 2025 and underscores Sempra Infrastructure and JERA’s shared commitment to supporting energy security and a lower carbon future through stable, long-term LNG supply, Sempra announced on 31 Jul. 2025 in an official statement.
“This agreement establishes a long-term relationship with JERA and confirms Sempra Infrastructure’s commitment to customers in Japan and the greater Asian market and their continued access to affordable and secure US natural gas,” Sempra Infrastructure CEO Justin Bird said in the statement.
“We remain focused on advancing our Port Arthur LNG Phase 2 development project to a final investment decision and strengthening the role of the United States as an energy provider of choice for LNG buyers worldwide,” Bird said.
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PALNG Phase 2
The proposed PALNG Phase 2 project is competitively positioned and is under active marketing and development. Future phases are also in the early development stage.
The project has received all its key permits and is expected to include two liquefaction trains capable of producing approximately 13 MTPA of LNG, which could increase the total liquefaction capacity of the PALNG facility from 13 MTPA for Phase 1 to up to 26 MTPA.
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In Sep. 2023 the project received authorization from the Federal Energy Regulatory Commission (FERC). In Jul. 2024, Sempra Infrastructure announced Bechtel had been selected for a fixed-price engineering, procurement and construction contract for the project. More recently, the project received authorization in May 2025 from the US Department of Energy (DOE) to export US LNG to countries that do not have a free-trade agreement with the U.S.
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PALNG Phase 1 is currently under construction and expected to achieve commercial operation in 2027 and 2028 for trains 1 and 2, respectively, according to Sempra.
Development of PALNG Phase 2 remains subject to a number of risks and uncertainties, including completing the required commercial agreements, securing and/or maintaining all necessary permits, obtaining financing and reaching a final investment decision, among other factors, Sempra added in the statement.
“This agreement marks a significant strategic relationship with Sempra Infrastructure and underscores our commitment to securing a reliable, long-term LNG supply from trusted sources. Aligning with JERA’s growth strategy, the addition of flexible and dependable LNG volumes strengthens our overall LNG portfolio and enhances our ability to respond to the evolving global energy landscape while helping to ensure supply stability for Japan and across Asia,” JERA chief low carbon fuel officer Ryosuke Tsugaru said in the statement.
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By Isaac Silvestre reporting from Houston. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
