A Sempra subsidiary has completed the sale of a 42%, non-controlling interest in the Port Arthur LNG Phase 1 to KKR, making the private-equity firm the largest stakeholder in the project.

The $13 billion project on the Texas Gulf Coast reached final investment decision (FID) in March. At the time, Sempra announced it would sell a stake in the facility to New York-based KKR. At the time of the announcement, KKR’s possible stake was still undecided and ranged between 25% and 39%. The price paid by KKR for the stake was not disclosed in a Sept. 12 new release.

The transaction will not alter subsidiary Sempra Infrastructure from retaining a controlling 28% indirect interest in Phase 1 at the project level. The remaining 30% interest is owned by ConocoPhillips.

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“The closing of this transaction continues the positive momentum of our world-class Port Arthur LNG facility and highlights Sempra Infrastructure’s ability to access capital to support the growth of its infrastructure business,” said Justin Bird, CEO of Sempra Infrastructure. “We remain committed to developing energy infrastructure projects with strong partners to continue growing our portfolio while advancing global decarbonization and energy security.”

Port Arthur LNG Phase 1 has moved along with strong momentum and is on track to meet its objectives of “helping to deliver energy security, economic growth and a near-term supply of reliable and cleaner energy,” said James Cunningham, partner at KKR.

More than 2.8 million hours of work have been completed since construction began on the LNG facility this spring and Sempra reported no lost-time incidents.

The expected commercial operation date for Train 1 is 2027, with Train 2 coming online in 2028.

KKR’s involvement drew criticism from the Private Equity Stakeholder Project.

“KKR’s messaging on the climate risks of their investments is not consistent with their actual investment actions,” said Nichole Heil, research and campaign coordinator at the project. “Even with KKR’s showcased renewable energy initiatives, 78% of the company’s energy portfolio remains centered on fossil fuels. And with almost half of Port Arthur equity being owned by KKR, the firm is culpable for the community and climate harms the project produces.”

Heil added that the Port Arthur terminal will increase the toxic pollutant exposure for a “predominantly Black and Latino coastal town.”

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