A subsidiary of Sempra Infrastructure Partners entered into a joint venture with a consortium of private capital funds led by Blackstone Credit & Insurance, along with Apollo, KKR and Goldman Sachs Alternatives, for the development, construction and operation of the second phase of the Port Arthur LNG project.
The investors received 49.9 percent of the equity in the joint venture at closing for a cash consideration of $7 billion, with $3.4 billion funded upfront and the remainder during construction. The equity contributions will support $14 billion in capital expenditures for the development of the project.
The project will add two additional liquefied natural gas trains, one storage tank and associated facilities to produce a nameplate capacity of 13 Mtpa of LNG.
These transactions represent a continuation of S&C’s work advising Sempra in its financing and project development activities, including the development of the Port Arthur LNG Phase 1 project and other financings.
Sempra Infrastructure Partners is a business platform that builds, operates and invests in energy infrastructure to help enable the energy transition in North American markets and globally.
The core S&C team included Inosi Nyatta, Mimi Wu, Nick Baker, Will Bekker, Ben Zonenshayn, Julia Liu, Antony Chu, Amra Saric, Kelvin Kim and Russell Green. John Estes advised on financing matters. Isaac Wheeler, Stephen Profeta and Minkee Sohn advised on tax matters. Mehdi Ansari and Jay Thornton advised on IP matters. Heather Coleman and Lauren Appel advised on executive compensation matters. Shane Palmer advised on U.S. antitrust matters. Juan Rodriguez, Axel Beckmerhagen and Siddhant Iyer advised on competition matters.