Company: SREA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001032208-25-000065
Chunk: 396

Company: SEMPRA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 396
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2022 Permit authorizing emissions from the PA LNG Phase 1 and Phase 2 projects to the TCEQ for additional explanation of the agency’s permit decision. The U.S. Court of Appeals for the Fifth Circuit applied the standard adopted by the Supreme Court of Texas and denied the petitioner’s argument under the case, resulting in the continued effectiveness of the 2022 Permit. The ruling is subject to further appeal before it becomes final. The 2022 Permit is effective during the pending litigation.

Sempra Infrastructure has entered into a non-binding HOA for a 20-year SPA with Aramco International Gas Holding Co B.V. (Aramco) for 5 Mtpa of LNG offtake from the PA LNG Phase 2 project. The HOA further contemplates Aramco’s 25% participation in the project-level equity of the PA LNG Phase 2 project.

Sempra Infrastructure has definitive SPAs for LNG offtake from the PA LNG Phase 2 project with:

▪ConocoPhillips for a 20-year term for 4 Mtpa of LNG on a free-on-board basis

▪EQT Corporation for a 20-year term for 2 Mtpa of LNG on a free-on-board basis

▪JERA Co. Inc. for a 20-year term for 1.5 Mtpa of LNG on a free-on-board basis

In addition, SI Partners has a definitive SPA with the project for a 20-year term for 2.5 Mtpa of LNG and has entered into offtake agreements for excess quantities of LNG, which includes an offtake agreement for a 30-year term to the extent of incremental amounts produced above 10 Mtpa up to an additional 0.75 Mtpa.

We have an EPC contract with Bechtel to construct the PA LNG Phase 2 project. In September 2025, we issued a full notice to proceed under the EPC contract, which has an estimated price of approximately $9.0 billion, including change orders contemplated in project contingency. The total currently estimated capital expenditures for the project are approximately $14 billion, including, among other items, project contingency and a $1.9 billion true-up payment to the PA LNG Phase 1 project to acquire a 50% interest in the shared common facilities. The actual cost of the EPC contract and the actual amount of these capital expenditures may differ substantially from our estimates. We expect the third and fourth trains of