Sempra Strikes LNG Supply Deal with Germany's Largest Power Producer

(Reuters) — U.S.-based Sempra Energy said on Wednesday it would sell about 2.25 million tonnes per annum (MTPA) of LNG to Germany's largest power producer, RWE AG, which is trying to wean itself off Russian gas.

U.S. LNG companies have been exporting record volumes to the European Union following sanctions on Russia after its invasion of Ukraine, which tightened supplies to an already under-supplied market.

RWE's commodity exposure to Russia includes 15 terawatt hours (TWh) of gas deliveries by 2023, which it has reduced to 4 TWh since the invasion.

"Sempra Infrastructure's LNG projects are uniquely positioned to help provide U.S. LNG to support the energy security of America's allies in Europe, while also accelerating the transition to a lower carbon future," the company said in a statement.

Sempra said it would supply the gas for 15 years from its Port Arthur LNG Phase 1 project being developed in Jefferson County, Texas.

Earlier this month, the company clinched a deal to supply three million tonnes of LNG each year to Poland's PGNiG.

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