PORT ARTHUR, Texas — Port Arthur LNG (PALNG) hosted an open house Thursday to connect and answer questions from residents about the up-and-coming facility.
Sempra announced July 2022 that its subsidiary, Sempra Infrastructure, and ConocoPhillips have entered into a new agreement to develop the Port Arthur LNG (PALNG) project.
The $13 billion facility will be built along Highway 87, between Port Arthur and Sabine Pass.
Project leaders say they spent the last 7 years getting permits and applications finalized.
Because of this new partnership, Port Arthur will become a key player in the liquified natural gas industry, which is a hot commodity right now due to U.S. exports being shipped on tankers to Europe.
ConocoPhillips has agreed to have a 30% stake in PALNG, which will help pay for infrastructure improvements and eventually, increase production.
PALNG has contracted company Bechtel Energy to spearhead the project's construction.
Many Southeast Texas business owners like Kenny Tims and Brittney Richard spent Thursday evening working the room at the PALNG open house.
"We make connections with the right people to establish relationship, then we start moving forward to help our community, putting our people to work," Project Manager for KTMC Construction, Richard said.
"It's caught our interest and we want to be apart of it," Owner of KTMC Construction, Tims said.
Bechtel Energy President Paul Marsden says this facility will put this region of Texas on the map as global demand for liquefied natural gas grows.
"LNG is absolutely paramount to the actual move forward the energy transition transition. It is a significant cleaner fuel," Marsden said.
PALNG and Sempra President Martin Hupka and Marsden are big supporters of keeping things local.
"The resources are already here and the ability to get natural gas, but also the people," Hupka said.
"5,000 people, four years plus in construction we've been underway now for about six weeks and we've already engaged 40 local businesses," Marsden said. Sabine Independent School District educators say this is a great chance for students to network and even prepare for future careers.
"I can make this cool project, but how do I actually do this for a career and that's where situation like this are really helpful for these kids," said Director of Instructional Technology at Sabine ISD, Scott Hagedorn.
Marsden says, his company prides themselves off legacies.
"The legacy is this project making a big impact," Marsden said.
The first part of the project is expected to be online in 2027. PALNG expects to create 200 permanent jobs.
ConocoPhillips has agreed to have a 30% stake in PALNG, which will help pay for infrastructure improvements and eventually, increase production.
Governor Greg Abbott says the decision to make Port Arthur the location for a new natural liquefication and export terminal will further solidify Texas as the energy capital of the world, according to a news release.
"With a highly skilled workforce and business-friendly climate, and as a national leader in LNG exports, Texas is the prime location to expand LNG operations to unleash the United States' full economic potential in such a critical industry," Abbott said in the release. "Expanding LNG is imperative to American energy security, and the State of Texas looks forward to working alongside Sempra to advance this mission and bring more jobs and greater opportunities to hardworking Texans."
Sempra executives hope this 20-year partnership will give the world's energy supply a much needed boost.
Sempra Infrastructure President Dan Brouillette previously said the Port Arthur facility was hand-picked for this investment, due to the community and strong labor force.
"It's one of the best in the country, so it's a very good place to do business. Texas is a great place to do business, so that's very, very attractive for us. The second part is it's proximity for the Gulf of Mexico," Brouillette said.