Sempra Energy and Saudi Aramco have announced that their respective subsidiaries, Sempra LNG and Aramco Services Co., have signed a heads of agreement (HOA).
The HOA anticipates the negotiation and finalisation of a definitive 20-year LNG sale and purchase agreement (SPA) for 5 million tpy of LNG offtake from Phase 1 of the Port Arthur LNG export project under development.
It also includes the negotiation and finalisation of a 25% equity investment in Phase 1 of Port Arthur LNG.
Amin Nasser, Saudi Aramco's CEO and President, said: "The agreement with Sempra LNG is a major step forward in Saudi Aramco's long-term strategy to become a leading global LNG player. With global demand for LNG expected to grow by around 4% per year, and likely to exceed 500 million tpy by 2035, we see significant opportunities in this market and we will continue to pursue strategic partnerships which enable us to meet rising global demand for LNG."
"At Sempra Energy, we are developing one of the largest LNG export infrastructure portfolios in North America, with an eye towards connecting millions of consumers to cleaner, more reliable energy sources," said Jeffrey W. Martin, Chairman and CEO of Sempra Energy. "We are pleased to partner with affiliates of Saudi Aramco, the largest oil and gas company in the world, to advance the development of Sempra LNG's natural gas liquefaction facility in Texas and enable the export of American natural gas to global markets."
The proposed Port Arthur LNG Phase 1 project is expected to include two liquefaction trains, up to three LNG storage tanks and associated facilities that should enable the export of approximately 11 million tpy of LNG on a long-term basis. Port Arthur LNG could be one of the largest LNG export projects in North America, with potential expansion capabilities up to eight liquefaction trains or approximately 45 million tpy of capacity.
Read the article online at: https://www.tanksterminals.com/terminals/22052019/sempra-lng-and-aramco-services-co-ink-hoa/
You might also like
CST Industries, Inc. has announced its acquisition of Ostsee Tank Solutions, building upon the company's growth in the industry and expanding its portfolio.