Aramco and Sempra sign LNG offtake agreement

Aramco has further strengthened its position in the LNG global market by signing a non-binding Heads of Agreement (HoA) with Sempra for a 20-year sale and purchase agreement (SPA) relating to LNG offtake of 5.0 million tonnes per annum (Mtpa) from the Port Arthur LNG Phase 2 expansion project

Aramco’s will also potentially have a 25% participation in the project-level equity of Phase 2.

Nasir K. Al-Naimi, Aramco Upstream president, said, “We are excited to take this next step into the LNG sector. As a potential strategic partner in the Port Arthur LNG Phase 2 project, Aramco is well placed to grow its gas portfolio with the aim of meeting the world’s growing need for lower-carbon sources of energy. This agreement is a major step in Aramco’s strategy to become a leading global LNG player.”

Port Arthur LNG is a natural gas liquefaction and export terminal in Southeast Texas with direct access to the Gulf of Mexico. The Port Arthur LNG Phase 1 project is currently under construction and consists of trains 1 and 2, as well as two LNG storage tanks and associated facilities. The Port Arthur LNG Phase 2 project will expand the site to include the addition of up to two trains capable of producing up to 13 Mtpa. Port Arthur LNG has potential to expand to a total of eight trains, which would make it one of the world’s most significant LNG export facilities.