Sempra Energy, a U.S.-based energy company, received approval from the U.S. Department of Energy on Thursday to export liquefied natural gas (LNG) from its Port Arthur Phase 2 project in Texas to markets in Europe and Asia. This marks the first final LNG export authorization issued under the current U.S. administration, following a period of review focused on the economic and environmental impacts of the LNG industry.

Electric power transmission pylon miniatures and Sempra Energy logo are seen in this illustration taken, December 9, 2022.

The Port Arthur Phase 2 project builds on the ongoing construction of Phase 1, enhancing the facility’s capacity to meet global energy demands. U.S. Energy Secretary Chris Wright commented: “The project marks a significant expansion of the first phase already under construction—turning more of the liquid gold beneath our feet into energy security for the American people.” The approval represents a key step forward for Sempra as it advances toward a final investment decision (FID) for the project.

Justin Bird, CEO of Sempra Infrastructure, a division of Sempra Energy, noted: “The approval marks another milestone for the proposed Port Arthur LNG Phase 2 development project, as Sempra makes steady progress towards reaching a final investment decision.” The project, once operational, is expected to export 1.91 billion cubic feet of LNG per day, contributing significantly to global energy supply. Phase 1 of the Port Arthur facility is under construction and slated to begin exports in 2027.

In addition to Port Arthur, Sempra operates the Cameron LNG export terminal in Louisiana, which has been exporting LNG since 2019. The company is also developing the Energia Costa Azul terminal in Mexico, set to commence commercial export operations of U.S.-sourced LNG in 2026. These efforts reflect Sempra’s commitment to expanding its role in the global LNG market.

While the Port Arthur Phase 2 project has secured final export approval, it still requires a final investment decision, expected by the end of 2025, though macroeconomic uncertainties may influence the timeline. The project aligns with other recent conditional approvals for LNG facilities, such as Commonwealth LNG in Cameron Parish, Louisiana, and Venture Global’s CP2 project, also in Louisiana, both of which await final clearance from the Federal Energy Regulatory Commission.