Port Arthur LNG Final Investment Decision Delayed For The Second Time

Port Arthur, TX -- Today, news broke that Sempra Energy will delay its Final Investment Decision (FID) on its proposed Port Arthur LNG export terminal for the second time due to “commercial challenges.” In 2020, Sempra targeted an FID for Q3, but pushed to this year, only to delay it again to 2022.

The Port Arthur gas export project has the capacity to produce as much as 11 million metric tons of LNG every year, mostly extracted by fracking. The projects would export pollution and lock in new and expanded domestic fossil fuel production, transport, and processing infrastructure, perpetuating fossil fuel dependence for decades to come. If built, Port Arthur would destroy ecologically sensitive coastal wetlands, put communities at risk, and worsen the already urgent climate crisis.

The oil and gas industry has made their interest in export facilities clear as a pathway to drive new markets for dirty fuels, but project proposals continue to meet strong community opposition and shaky economic prospects. In March, Annova LNG abandoned its plans for its own fracked gas export terminal when it became clear that no one was buying what they were selling. In November, French trading firm Engie dropped negotiations on a $7 billion, 20-year contract to import fracked gas from NextDecade’s planned Rio Grande LNG export facility near Brownsville, Texas, citing concerns about the climate impacts of fracked gas.

In response, Sierra Club Beyond Dirty Fuels Director Kelly Martin issued the following statement:

“It’s pretty simple: Fracked gas export facilities threaten our health and the climate and are risky investments. In other words, they’re bad business. Today’s news is a promising development to protect coastal wetlands and local communities and one more step toward ensuring that the Port Arthur LNG facility is never built.”