Sempra Infrastructure, a subsidiary of Sempra, and JERA Co., Inc. have announced the signing of a significant 20-year sale and purchase agreement for the supply of 1.5 million tonnes per annum of liquefied natural gas from the Port Arthur LNG Phase 2 development project in Jefferson County, Texas. The LNG will be supplied on a free-on-board basis.
The agreement represents a substantial advancement from the non-binding heads of agreement executed in June 2025 and demonstrates both companies’ shared commitment to supporting energy security and advancing a lower carbon future through stable, long-term LNG supply arrangements.
Strategic Partnership for Energy Security
Justin Bird, chief executive officer of Sempra Infrastructure, emphasised that the agreement establishes a long-term relationship with JERA whilst confirming Sempra Infrastructure’s commitment to customers in Japan and the broader Asian market, ensuring their continued access to affordable and secure U.S. natural gas.
“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,” Bird stated.
Ryosuke Tsugaru, chief low carbon fuel officer for JERA, described the agreement as marking a significant strategic relationship with Sempra Infrastructure, underscoring JERA’s commitment to securing reliable, long-term LNG supply from trusted sources.
“Aligning with JERA’s growth strategy, the addition of flexible and dependable LNG volumes strengthens our overall LNG portfolio and enhances our ability to respond to the evolving global energy landscape whilst helping to ensure supply stability for Japan and across Asia,” Tsugaru added.
Project Development and Capacity
The proposed Port Arthur LNG Phase 2 project is competitively positioned and remains under active marketing and development, with future phases also in early development stages. The project has secured all key permits and is expected to include two liquefaction trains capable of producing approximately 13 Mtpa of LNG.
This capacity could increase the total liquefaction capacity of the Port Arthur LNG facility from approximately 13 Mtpa for Phase 1 to up to approximately 26 Mtpa upon completion of Phase 2.
Regulatory Approvals and Timeline
The project has achieved several significant regulatory milestones. In September 2023, it received authorisation from the Federal Energy Regulatory Commission. Subsequently, in July 2024, Sempra Infrastructure announced that Bechtel had been selected for a fixed-price engineering, procurement and construction contract for the project.
Most recently, in May 2025, the project received authorisation from the US Department of Energy to export US LNG to countries that do not maintain free-trade agreements with the United States.
The Port Arthur LNG Phase 1 project, currently under construction, is expected to achieve commercial operation in 2027 and 2028 for trains 1 and 2, respectively.
Risk Factors and Future Development
The development of the Port Arthur LNG Phase 2 project remains subject to various risks and uncertainties. These include completing the required commercial agreements, securing and maintaining all necessary permits, obtaining financing, and reaching a final investment decision, amongst other factors.
The agreement between Sempra Infrastructure and JERA represents a significant development in the global LNG market, strengthening energy ties between the United States and Asia whilst supporting long-term energy security objectives for both regions.
For more information visit www.jera.co.jp
