Sempra Infrastructure has reached final investment decision (FID) on Port Arthur LNG Phase 2 in Jefferson County, Texas, a move that will double the facility’s export capacity to around 26 million tonnes per annum (mtpa). According to EPCIntel.com’s database of EPC contracts, Bechtel Energy has secured the full EPC scope for both phases, reinforcing its dominant role in U.S. LNG execution.
Phase 2 details
Phase 2 will add two new liquefaction trains, one storage tank and associated facilities at an estimated cost of $14 billion, including $12 billion in direct capex and $2 billion for shared infrastructure. Commercial start-up is expected in 2030 for Train 3 and 2031 for Train 4.
Funding has been secured with a $7 billion equity investment led by Blackstone Credit & Insurance, alongside KKR, Apollo-managed funds and Goldman Sachs Alternatives. Sempra Infrastructure retains a 50.1% majority interest, while the investor consortium holds 49.9%.
Offtake for Phase 2 is fully subscribed under 20-year sales and purchase agreements with ConocoPhillips (also a strategic partner), JERA, EQT and others.
Phase 1 progress
Construction of Phase 1 (13 mtpa) is already underway with Bechtel Energy holding EPC scope. The first phase is fully subscribed by major buyers including ConocoPhillips, RWE, INEOS and Engie, with first LNG expected in 2027.
Bechtel’s continuity across both phases provides execution efficiencies, lower risk and shared supply chain benefits, positioning Port Arthur as a benchmark in large-scale modular LNG construction.
Strategic significance
By doubling its capacity to 26 mtpa, Port Arthur LNG cements the U.S. Gulf Coast as a global LNG powerhouse. The expansion underscores investor confidence in LNG as a long-term transition fuel, while providing enhanced energy security options for buyers in Europe and Asia.
For Sempra, the project highlights the strength of its capital recycling strategy and its ability to attract global partners into U.S. infrastructure. With Phase 2 now sanctioned, total project investment at Port Arthur approaches $27 billion, making it one of the largest LNG investments in the Western Hemisphere.
Upcoming EPC opportunities
While Bechtel has secured the lump-sum EPC scope for Phases 1 and 2, subcontracting opportunities remain substantial. EPCIntel benchmarks show billions in potential awards across cryogenic heat exchangers, turbines, compressors, LNG storage tanks, power systems and marine facilities. In addition, upcoming Phase 3 and debottlenecking studies at Port Arthur could create further multi-billion-dollar tenders before the end of the decade.
Suppliers of heavy equipment, modular fabrication, electrical systems and carbon-reduction technology are expected to be among the biggest beneficiaries as the U.S. Gulf Coast cements its role at the center of global LNG growth.
