Sempra Signs 20-Year Deal to Supply LNG to Aramco from Port Arthur Project
(P&GJ) — Aramco and Sempra have signed a non-binding agreement for a 20-year sale and purchase agreement for 5 million tonnes per annum (mtpa) of LNG from the Port Arthur LNG Phase 2 expansion project.
The agreement also includes Aramco's potential 25% participation in the project's equity.
The parties expect to finalize a binding LNG SPA and definitive equity agreements with terms similar to those in the HoA, subject to various conditions.
Port Arthur LNG is a natural gas liquefaction and export terminal in Southeast Texas with direct access to the Gulf of Mexico. Currently under construction, the Port Arthur LNG Phase 1 project includes trains 1 and 2, two LNG storage tanks, and associated facilities. The Phase 2 project aims to add up to two more trains, increasing production capacity to 13 mtpa.
"The planned expansion of Port Arthur LNG would help facilitate the broad distribution of U.S. natural gas across global energy markets,” Jeffrey W. Martin, Sempra chairman and CEO, said. “By expanding the global reach of the Port Arthur LNG facility, we have the opportunity to improve energy security, while providing a lower-carbon alternative to coal for electricity production."
Port Arthur LNG, part of Sempra Infrastructure's flagship Port Arthur Energy Hub, has the potential to expand to a total of eight trains, making it one of the world's largest LNG export facilities. The facility is expected to enhance global energy security and resilience. Sempra Infrastructure is also advancing projects within the Port Arthur Energy Hub to meet the demand for lower-carbon fuels and reduce carbon intensity, including the proposed Titan Carbon Sequestration project.
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