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HOUSTON/PITTSBURGH - Sempra Infrastructure, a subsidiary of Sempra (NYSE:SRE), a $53.4 billion utility giant with a strong financial health score of "FAIR" according to InvestingPro, and EQT Corporation (NYSE:EQT) announced Wednesday a 20-year sales and purchase agreement for 2 million tonnes per annum of liquefied natural gas from the Port Arthur LNG Phase 2 development project in Texas.
Under the agreement, EQT will purchase the LNG on a free-on-board basis at a price indexed to Henry Hub, according to a company press release.
The Port Arthur LNG Phase 2 project has secured all major permits, including Federal Energy Regulatory Commission approval in September 2023 and U.S. Department of Energy export authorization in May 2025.
This marks the third major offtake agreement for the project, following a 20-year deal with JERA Co. for 1.5 million tonnes per annum in July and a 4 million tonnes per annum agreement with ConocoPhillips earlier this month.
Sempra Infrastructure has selected Bechtel to handle engineering, procurement and construction for the facility. The company aims to make a final investment decision on Phase 2 in 2025.
"Advancing the Port Arthur LNG Phase 2 project with EQT reflects our mutual commitment to helping ensure U.S. natural gas projects continue to support local economic development," said Justin Bird, CEO of Sempra Infrastructure.
When completed, Phase 2 is expected to include two liquefaction trains capable of producing approximately 13 million tonnes per annum of LNG, potentially doubling the facility’s total capacity to 26 million tonnes per annum.
Phase 1 of the Port Arthur LNG facility is currently under construction, with commercial operations expected to begin in 2027 and 2028 for trains 1 and 2, respectively.
The development remains subject to various risks, including completing required commercial agreements, maintaining permits, securing financing and reaching a final investment decision.
In other recent news, Sempra Energy reported its second-quarter earnings for 2025, revealing mixed results. The company achieved an adjusted earnings per share (EPS) of $0.89, slightly surpassing the forecast of $0.87. However, the revenue for the quarter fell short of expectations, reaching $3 billion compared to the anticipated $3.1 billion. Despite this revenue miss, Sempra Energy has maintained its full-year 2025 EPS guidance, indicating confidence in its strategic plans. Additionally, the company received attention from analysts, although specific upgrades or downgrades were not highlighted in the recent developments. These updates provide investors with the latest insights into Sempra Energy’s financial performance and future outlook.
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