Sempra (NYSE:SRE) Q4 2022 Earnings Call Transcript

Craig Shere: Great. And that kind of tees up a little bit my second question here. I guess on a macro basis in the United States, I am wondering, Justin, if you have some feel for after remarkable prior 12 months of contracting, what we might see in terms of a slowdown in the next year or 2 years? And what I am kind of referring to is that if some partially contracted projects were across the finish line, some peers, we could see 80-plus Mtpa of FIDs within 18 months. And we are just wondering if that’s just more than the market needs just past mid-decade.

Jeff Martin: Well, this is Jeff speaking. I will provide a couple of comments, and Justin, feel free to weigh in. We think our view across the decade is very similar with what’s been put out by the EIA, which is forecasting 130% growth for U.S. LNG across the decade. The 80 million tons per annum that you referenced sounds about right, actually. I think actually the DOE might be forecasting slightly more than that. But remember, it’s not just American LNG, we are competing against other markets, whether it’s Australia or Qatar. There is certainly opportunities potentially at Mozambique. And remember, there are still volumes coming out of Russia, particularly on the North Coast as well as from South. And so, I think one of the things we have noticed is there is a tremendous demand for energy security and affordable sources of energy and natural gas has a very big runway internationally.

We may see a decline here in the United States in different regions of the country, but it is a really big opportunity. I think the United States is viewed as a market that has security of supply, and we have got good counterparties and we have got good credit, and we have got deep capital markets. So, we are going to see the lion’s share of LNG across the globe will be coming from the United States across this decade.

Craig Shere: Thank you.

Jeff Martin: Thank you for joining us.

Operator: Thank you. That concludes today’s question-and-answer session. At this time, I would like to turn the conference back to Jeff Martin for any additional closing remarks.

Jeff Martin: Sure. Just by way of a brief close, we know there are several investor conferences underway today. So, we very much appreciate everyone making time to join us. If there are any follow-up questions, per custom, always reach out to our IR team with any additional questions. This concludes our call.

Operator: Thank you for your participation. You may now disconnect.