A final investment decision for the Port Arthur liquefied natural gas terminal in the US is expected in the first quarter of 2023, energy infrastructure company Sempra said in its latest earnings call, held on Thursday.

The announcement follows the finalising of the engineering, procurement and construction (EPC) contract for the first phase of the project in the second quarter of this year.

The contract, between Sempra Infrastructure and Bechtel Energy, was amended in October and valued at $10.5 billion.

“We have made significant progress on advancing development at Port Arthur LNG, where we now expect to take a final investment decision on Phase 1 in the first quarter of next year,” said Sempra chief executive Jeffrey Martin.

Port Arthur LNG is to be built on the Gulf Coast in Texas’s Jefferson County.

The project was originally scheduled to come online in 2024 but a 50-month extension was granted to June 2028 citing delays related to the Covid-19 pandemic and global supply chain issues.

Phase one of the project will include two gas liquefaction trains and up to three LNG storage tanks. with a nameplate LNG output capacity of up to 13.5 tonnes per annum.

Under a planned phase two expansion, capacity could be doubled to 27 million tpa.

Separately, Sempra said it “continues to advance” its Cameron LNG phase two project that is currently under development and anticipates reaching a final investment decision on Train 4 following the completion of front-end engineering and design, which is set for “summer 2023”.

In its third quarter results released on Thursday, Sempra posted earnings of $485 million, compared to third-quarter 2021 losses of $648 million.

The company reported earnings for January-September at $1.66 billion, a 155% increase on the $650 million reported in the same period of last year.