Sempra Energy is the latest company to delay a final investment decision (FID) on a major liquified natural gas (LNG) project.
The company said during its Q1 earnings report that an FID on its Port Arthur LNG in Texas is now expected in 2021, given current market dynamics. FID on the 11-mtpa project was expected in Q3. The company’s decision comes just after Port Arthur LNG and a Bechtel subsidiary signed a fixed-price engineering, procurement, and construction (EPC) contract for the project.
The project is expected to initially include two liquefaction trains, two LNG storage tanks, a marine berth and associated loading facilities, and related infrastructure necessary to provide liquefaction services, with a nameplate capacity of approximately 13.5 mtpa of LNG.
The project has expansion capabilities of up to 8 liquefaction trains and approximately 45 mtpa of capacity.
Although some LNG projects are facing delays, others are going ahead as scheduled.
Sempra’s decision also comes after other companies such as ExxonMobil and Qatar Petroleum recently made similar announcements.
In April, ExxonMobil said it was delaying FID on its Rovuma LNG project in Mozambique. Qatar Petroleum also said in April it would postpone startup of its North Field LNG project offshore the Qatar peninsula until 2025.
Other projects are still on track with some even ahead of schedule.
Sempra added that its Cameron LNG project in Louisiana is on track to produce LNG from the third and final train in Q2 and begin commercial operations in Q3 after reaching final commissioning stage for phase 1.
McDermott International with its partners Chiyoda International Corporation and Zachry Group announced the Freeport LNG project in Texas began commercial operations of train 3. The commercial startup at Freeport comes just after feed gas was introduced to train 3 in March.
Venture Global LNG raised the first LNG storage tank roof at its 10-mtpa Calcasieu Pass LNG export facility in Cameron Parish, Louisiana, on schedule and 8 months after reaching FID on the project.