So this is really something that really impacts directly Port Arthur Phase 2 and we expect to work through that early next year. I would note that Justin’s team continues to work diligently to advance Port Arthur Phase 2, which we continue to believe has tremendous commercial value. But I also thought it might be helpful if I return to what we think are probably the most important points around our LNG strategy. We have quality LNG development projects, which obviously include the expansion of Port Arthur. They are geographically advantaged. There’s no other developer out there that has the opportunity to directly access Asia and also dispatch into the Atlantic through the Gulf. The next two in the queue have the advantage of being brownfield sites.
That’s another economic advantage for us at Port Arthur Phase 2 as well as Cameron expansion. And we’re advancing these projects in a disciplined manner for the benefit of our shareholders. I would also note that they are effectively upside to our current $48 billion capital plan and they are also upside to our long-term growth rate.
Durgesh Chopra: Thanks Jeff. I appreciate all that color. And I think you did answer my question, I was just going to ask you. If there is a time line that we should follow as you think about FID whether it’s Port Arthur Phase 2 or the Cameron expansion.
Jeff Martin: Sure. I would mention two things. One is we have guided our expect FID for Cameron expansion to the first half of 2025. We have not yet set an FID expectation for Port Arthur Phase 2. But I can assure you that Justin’s team continues to make steady progress. I mean as you go quarter-over-quarter, we are continuing to make progress in commercially developing both of those projects and I think the momentum inside of our company continues to build on their overall success.
Durgesh Chopra: Thank you again. Excellent quarter guys. Thanks so much again.
Jeff Martin: Thank you so much.
Operator: Thank you. And our next question will come from Carly Davenport from Goldman Sachs. Your line is now open.
Carly Davenport: Hi. Thanks so much for taking the questions today.
Jeff Martin: Hi, Carly.
Carly Davenport: Hi, Jeff. How are you? I wanted to just go back to the SRP filing. Really appreciate all the detail there so far. Just wanted to get a sense of how we should think about the timing and the cadence of that spend assuming that the plan goes into effect in the 2025 time frame. And then can you just remind us how procedurally you expect this to play out between now and year-end?
Jeff Martin: Yes. Let me start with the procedural point and then I’ll pass it on to Allen to talk about how he expects that capital to go forward. Obviously, they’ve made the filing yesterday which was contemplated in the legislative bill that passed last year. The commission has a statutory 180 days to review and approve the filing. So, I think for now, we’re expecting that to be in hand in the fourth quarter. And then in terms of that rolling out suspend over three years. And maybe Allen, you can talk about it on a going-forward basis, how you think that capital would lay in, obviously subject to the commission’s approval and the final number.
Allen Nye: Yes, you bet, Jeff. Pretty simply, it’s basically 2025 through 2027 for those outlays and it’s slightly backloaded.
Carly Davenport: Got it, great. Thank you so much for that. And then to follow up just on, you’ve talked a lot about these robust load growth opportunities in Texas supporting infrastructure investment. Just could you talk a little bit about, if there’s any sort of supply chain or other constraints that you’re running into in terms of executing on that T&D build out at Oncor?
Jeff Martin: Yes. I said something about this in my prepared remarks. We continue to see some supply chain constraints in some areas, but in general we’re seeing obviously load growth across all of our markets and there’s been some relaxation of the supply chain issue. I think Oncor in particular and both Justin and I serve on their Board of Directors have done a really good job of going into the marketplace to secure the appropriate contractors and hard goods. But Allen perhaps you could talk about the work that the team has done. And over what period of time do you feel like you’ve got what you need locked in?
Allen Nye: Sure. Yes. Carly, it’s a great question. Again, as Jeff said, we at Oncor and our operations and our supply chain people had been working to get in position to be able to execute on this plan for quite a while now. And we’ve done a number of things, including diversifying our supply chain, adding additional suppliers five and six years ago that have put us in a position now to while there certainly are issues out there with supply chain, we feel extremely confident in the first two years. I’ve said it to my Board. I think we have the first two years effectively in the box with what we need from both an equipment perspective and from a vendor perspective. And we’ve made very significant progress on the outer three years as well.
And what we’re doing now is filling in the gaps and waiting to assign things out like engineering studies those aren’t completed yet for the outer years because we wouldn’t assign them out until we know exactly what we’re facing. But we’ve managed I believe to work through supply chain issues very effectively and we feel very good about where we are right now.
Jeff Martin: And then Carly, the only other thing I would add to Allen’s comments is think about his base capital plan which is just over $24 billion is really organized around growth. And specifically, it is weighted toward transmission. So roughly 60% of that spend is transmission. And I think that’s why this SRP filing is so important. It really creates a second leg of growth specifically around building in redundancy and resiliency in the system which is equally important to the state of Texas.
Carly Davenport: Understood. Thanks, so much for that color. Appreciate it.
Jeff Martin: Thank you.
Operator: And our next question will come from Steve Fleishman from Wolfe. Your line is open.
Jeff Martin: Hi Steve.
Steve Fleishman: Hi good afternoon. Just one question. Just I think Conoco might have said they have interest in selling down a stake in Port Arthur. I did not see it myself, so I’d just be curious, what you’re hearing from them.
Jeff Martin: Yes, I’ll make a couple of comments here. One is, Steve, Conoco is a very important strategic partner for us at Port Arthur. I would note that we’ve got a lot of respect for their management team and certainly have great relationships across both companies and I think a strong alignment of interest and this is the key point around both Phase 1 and Phase 2. So, whether they elect to put new capital into Phase 2 is an open matter. I’d certainly refer that to their management team. But just remember in the first phase they took roughly half of the offtake or 5 million tonnes per annum. They own 30% of the project well equity and they are also the gas manager for the first phase. The second phase is important context I believe on Conoco because the second phase will be taking gas supply Steve from the Permian Basin which has significant strategic considerations for a variety of commercial parties and that’s particularly true for ConocoPhillips.
So, I would just note that this is an area we’re working closely with a variety of counterparties who want to collaborate with us on the success of Phase 2. And based on the conversations we’re currently having we continue to be very excited about moving forward with that project.
Steve Fleishman: Okay, great. I’ll leave it there. Thank you very much.
Jeff Martin: Thank you, Steve.
Operator: Thank you. And our next question will come from Anthony Crowdell from Mizuho. Your line is open.
Anthony Crowdell: Good afternoon team.
Jeff Martin: Hi Anthony.
Anthony Crowdell: If I could I guess jump on Carly’s question. I guess hers is more specific maybe supply chain to the regulated utility. If I think about the Infrastructure business particularly with Port Arthur 2 and Cameron Phase 2, any big changes or estimates you’re seeing in the E&C contracts that maybe Bechtel is looking into?
Jeff Martin: Yes. What might be helpful here Anthony is — Justin if you just take us through maybe a little bit of a construction update as well as what you’re doing to secure some long lead time items on some of the products you’re near-term focused and that might be helpful for his question.
