Milbank LLP advised Blackstone Credit & Insurance (“BXCI”) as leader of a $7 billion investment in Sempra Infrastructure Partners’ Port Arthur LNG Phase 2. Funds managed by BXCI, together with an investor consortium including KKR, Apollo-managed funds and Private Credit at Goldman Sachs Alternatives, have acquired a 49.9% minority equity interest in the project. Sempra Infrastructure Partners has retained a 50.1% majority stake.
The investment will advance the development, construction and operation of Port Arthur LNG Phase 2. The new phase will include two natural gas liquefaction trains, one LNG storage tank and associated facilities with a nameplate capacity of approximately 13 million tonnes per annum (Mtpa) of US-produced LNG. Incremental project capital expenditures at Phase 2 are estimated at $12 billion, plus an approximate $2 billion payment for shared common facilities, with commercial operations expected in 2030 and 2031 for Trains 3 and 4, respectively.
The Milbank team was led by Global Corporate/M&A partner and co-head of Milbank’s Global Infrastructure practice John Franchini, Global Project, Energy and Infrastructure Finance Group chair Dan Bartfeld, Global Project, Energy and Infrastructure Finance partners Sean O’Neill and Mike Duff and Global Corporate/M&A partner Benjamin Fidler. The team also included Global Corporate/M&A associates Steve Ahn, Rachel Rice, Guilherme Maranhão, Ari Tuchman, Gabe Carolan, Marc Kilani, Justice Njoku and Joshua Rosenberg and law clerk Michaela Fleischer; Global Project, Energy and Infrastructure Finance special counsel Adam Cowan, associates Andy Lassman, Olivia Scandura and Sebastian Leon Nunez and law clerks Zoe Caldwell, Sam Fishbein, Linda Nguyen and Mo Zeighami; and Transportation & Space associate Ariella Stepanian.
