Sempra Infrastructure and JERA Finalize Long-term LNG Supply Agreement from Port Arthur LNG Phase 2
In a recent development that reinforces global energy partnerships, Sempra Infrastructure, a key subsidiary of Sempra Energy, has finalized a significant sale and purchase agreement with Japan's JERA Co., Inc. This groundbreaking deal, which spans 20 years, secures an annual supply of 1.5 million tonnes of liquefied natural gas (LNG) from the Port Arthur LNG Phase 2 facility located in Jefferson County, Texas. This agreement was built upon a non-binding heads of agreement that was first signed back in June 2025, demonstrating both companies' ongoing commitment to securing a stable and long-term supply of LNG.
The positive impacts of this collaboration were highlighted by Justin Bird, the CEO of Sempra Infrastructure, who stated, "This agreement establishes a long-term relationship with JERA and confirms Sempra Infrastructure's commitment to customers in Japan and the broader Asian market, ensuring access to affordable and secure U.S. natural gas." This sentiment echoes the growing demand for reliable energy sources as nations focus on energy security and a lower carbon future.
Ryosuke Tsugaru, Chief Low Carbon Fuel Officer at JERA, also expressed optimism about the partnership, noting, "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." He emphasized how such partnerships enhance JERA's growth strategy and its ability to navigate the evolving global energy landscape, ensuring supply stability for Japan and other regions in Asia.
As for the Port Arthur LNG Phase 2 project itself, it is actively being marketed and developed with great potential. The project is competitively positioned and has already secured essential permits, paving the way for the construction of two liquefaction trains. These trains are projected to produce approximately 13 million tonnes per annum (Mtpa) of LNG, effectively doubling the current production capacity from the Port Arthur facility, which accounts for the initial phase.
Recent approvals have also come through, including an authorization from the Federal Energy Regulatory Commission in September 2023, coupled with a fixed-price engineering, procurement, and construction contract awarded to Bechtel in July 2024. Moreover, in May 2025, a significant milestone was achieved when the U.S. Department of Energy gave the green light for exports of U.S. LNG to nations lacking a free trade agreement with the U.S.
While the ongoing construction of the Port Arthur LNG Phase 1 project is expected to reach commercial operations between 2027 and 2028, the Phase 2 project faces several risks and uncertainties. These challenges include the completion of vital commercial agreements, securing additional permits, acquiring financing, and ultimately reaching a final investment decision.
About Sempra Infrastructure: Headquartered in Houston, Sempra Infrastructure is dedicated to shaping a future powered by modern energy solutions, which are seen as essential components for upcoming energy systems. They focus on building, operating, and investing in innovative energy infrastructure, including LNG and low-carbon solutions. The company works diligently to assure safe and reliable energy, thereby advancing energy security.
About JERA: JERA stands as a leading figure in global energy, being Japan’s largest power generation enterprise, dedicated to tackling the world’s energy challenges. Having established itself in 2015, JERA's operations include the generation of one-third of Japan's electricity and positioning itself as one of the top buyers of LNG on the global market. The company’s extensive reach spans the entire energy supply chain, thus reinforcing its commitment to a responsible energy transition as it aims for net-zero CO₂ emissions by 2050.
The positive impacts of this collaboration were highlighted by Justin Bird, the CEO of Sempra Infrastructure, who stated, "This agreement establishes a long-term relationship with JERA and confirms Sempra Infrastructure's commitment to customers in Japan and the broader Asian market, ensuring access to affordable and secure U.S. natural gas." This sentiment echoes the growing demand for reliable energy sources as nations focus on energy security and a lower carbon future.
Ryosuke Tsugaru, Chief Low Carbon Fuel Officer at JERA, also expressed optimism about the partnership, noting, "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." He emphasized how such partnerships enhance JERA's growth strategy and its ability to navigate the evolving global energy landscape, ensuring supply stability for Japan and other regions in Asia.
As for the Port Arthur LNG Phase 2 project itself, it is actively being marketed and developed with great potential. The project is competitively positioned and has already secured essential permits, paving the way for the construction of two liquefaction trains. These trains are projected to produce approximately 13 million tonnes per annum (Mtpa) of LNG, effectively doubling the current production capacity from the Port Arthur facility, which accounts for the initial phase.
Recent approvals have also come through, including an authorization from the Federal Energy Regulatory Commission in September 2023, coupled with a fixed-price engineering, procurement, and construction contract awarded to Bechtel in July 2024. Moreover, in May 2025, a significant milestone was achieved when the U.S. Department of Energy gave the green light for exports of U.S. LNG to nations lacking a free trade agreement with the U.S.
While the ongoing construction of the Port Arthur LNG Phase 1 project is expected to reach commercial operations between 2027 and 2028, the Phase 2 project faces several risks and uncertainties. These challenges include the completion of vital commercial agreements, securing additional permits, acquiring financing, and ultimately reaching a final investment decision.
About Sempra Infrastructure: Headquartered in Houston, Sempra Infrastructure is dedicated to shaping a future powered by modern energy solutions, which are seen as essential components for upcoming energy systems. They focus on building, operating, and investing in innovative energy infrastructure, including LNG and low-carbon solutions. The company works diligently to assure safe and reliable energy, thereby advancing energy security.
About JERA: JERA stands as a leading figure in global energy, being Japan’s largest power generation enterprise, dedicated to tackling the world’s energy challenges. Having established itself in 2015, JERA's operations include the generation of one-third of Japan's electricity and positioning itself as one of the top buyers of LNG on the global market. The company’s extensive reach spans the entire energy supply chain, thus reinforcing its commitment to a responsible energy transition as it aims for net-zero CO₂ emissions by 2050.
Topics Energy）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.