Sempra announces sale and purchase agreement with RWE for Port Arthur LNG
Sempra Infrastructure, a subsidiary of Sempra has entered into a long-term sale and purchase agreement (SPA) with RWE Supply & Trading, a subsidiary of RWE (RWE: AG), for the supply of approximately 2.25 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) from the Port Arthur LNG Phase 1 project under development in Jefferson County, Texas, according to the company's release.
The LNG will be delivered on a free-on-board basis for 15 years. The agreement also provides a framework to explore ways to lower the carbon intensity of LNG produced from the Port Arthur LNG Phase 1 project through GHG emission reduction, mitigation strategies and a continuous improvement approach.
Sempra Infrastructure recently announced it has entered into long-term agreements with ConocoPhillips, INEOS and ENGIE for the sale and purchase of approximately 7.3 Mtpa of LNG from the proposed Phase 1 project. The company is focused on completing the remaining steps necessary to achieve its goal of making a final investment decision for Phase 1 of the liquefaction project in the first quarter of 2023, with first cargo deliveries expected in 2027.
The Port Arthur LNG Phase 1 project is permitted and expected to include two natural gas liquefaction trains and LNG storage tanks and associated facilities capable of producing, under optimal conditions, up to approximately 13.5 Mtpa of LNG. A similarly sized Port Arthur LNG Phase 2 project is also competitively positioned and under active marketing and development.
Development of both phases of the Port Arthur LNG project is contingent upon completing the required commercial agreements, securing and/or maintaining all necessary permits, obtaining financing, and reaching a final investment decision, among other factors.
