Sempra Infrastructure and JERA have formalized a 20-year sale and purchase agreement for U.S. liquefied natural gas, securing a stable, long-term supply for Japan and other Asian markets from the Port Arthur LNG Phase 2 development project.
Sempra Infrastructure, a subsidiary of the North American energy infrastructure company Sempra, and JERA Co. Inc. Japan's largest power-generating company, have officially announced a definitive 20-year Sale and Purchase Agreement (SPA) for liquefied natural gas (LNG). The landmark deal will see Sempra supply 1.5 million tonnes per annum (Mtpa) of LNG from its Port Arthur LNG Phase 2 development project in Jefferson County, Texas.
Justin Bird, chief executive officer of Sempra Infrastructure, highlighted the significance of the partnership. "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 U.S. natural gas," Bird said in a 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."
Ryosuke Tsugaru, JERA's chief low carbon fuel officer, emphasized the importance of securing a dependable energy source. "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," Tsugaru stated.
The Port Arthur LNG Phase 2 project is currently under active marketing and development, with future phases also in the early stages of planning. The project has already received all its key regulatory permits. This includes authorization from the Federal Energy Regulatory Commission (FERC) in September 2023, the selection of Bechtel for a fixed-price engineering, procurement, and construction (EPC) contract in July 2024, and, most recently, a U.S. Department of Energy (DOE) permit in May 2025 to export U.S. LNG to countries that do not have a free-trade agreement with the United States.
The Phase 2 expansion is designed to include two new liquefaction trains with a combined capacity of approximately 13 Mtpa. This will effectively double the total liquefaction capacity of the Port Arthur LNG facility from the 13 Mtpa of Phase 1 to up to 26 Mtpa. Phase 1 of the project is currently under construction and is expected to begin commercial operation for its first and second trains in 2027 and 2028, respectively.
