Company: SREA
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001032208-25-000065
Chunk: 222

Company: SEMPRA
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 2
Chunk 222
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ake 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 the Port Arthur LNG liquefaction project to commence commercial operations in 2030 and 2031, respectively.

To secure gas supply for the PA LNG Phase 2 project, Sempra Infrastructure entered into a natural gas transportation agreement with a third-party pipeline developer. The transportation capacity commitment is subject to completion of pipeline construction by a third-party developer that is expected to occur by early 2029. Sempra Infrastructure holds a contractual option to acquire the third party’s interest in the pipeline if certain construction milestones are not met, which would release Sempra Infrastructure from the associated capacity commitment. In September 2025, we provided certain equity commitments related to the Mustang Express Pipeline but, in October 2025, we transferred