Sempra ( NYSE: SRE ) will move forward with the first phase of the Port Arthur liquefied natural gas export terminal on the U.S. Gulf Coast by early next year, The Wall Street Journal reported Thursday.
The planned $10.5B Port Arthur LNG project in south Texas would be capable of producing as much as ~13.5M metric tons/year of LNG, with cargoes expected to be delivered starting in 2027.
In its Q3 earnings report , Sempra ( SRE ) said it is targeting a final decision on Port Arthur LNG in Q1 2023.
WSJ also reported Sempra ( SRE ) is completing a 20-year binding agreement to provide ConocoPhillips ( COP ) with 5M metric tons/year of LNG, and Conoco is expected to take a 30% equity investment in the first phase of the project.
Additionally, WSJ said Sempra ( SRE ) is in talks to sign a 20-year non-binding agreement to provide pipeline operator Williams ( WMB ) with 3M tons/year out of Port Arthur.
Sempra ( SRE ) reported Q3 adjusted earnings and revenues that topped analyst expectations; the company swung to a profit of $485M, or $1.53/share, from a loss of $648M, or $2.03/share, in the year-earlier quarter.
The company also raised full-year guidance for adjusted earnings to $8.70-$9.00/share from its previous EPS outlook of $8.10-$8.70.
Sempra's ( SRE ) stock price return shows a 14% YTD gain and a 17% increase during the past year .
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Sempra set to build new Port Arthur LNG export plant - WSJ