Sempra, Aramco ink LNG supply deal

Sempra, a US energy firm, has announced a non-binding agreement with Saudi Aramco for the supply of 5 million tons per annum of liquefied natural gas (LNG) from the Port Arthur LNG Phase 2 expansion project over 20 years. This partnership also includes Aramco’s potential 25 per cent equity participation in Phase 2 of the project.

Earlier reports from March indicated Aramco’s interest in investing in the Port Arthur project located in Texas.

Aramco’s move underscores its strategic intent to bolster its presence in the LNG market, particularly in the United States, where LNG production capacity is expected to nearly double in the next four years.

Nasir Al-Naimi, President of Aramco’s Upstream division, expressed optimism about the partnership, highlighting Aramco’s positioning to enhance its gas portfolio through the Port Arthur LNG Phase 2 project.

In addition to Sempra, Aramco has been engaged in discussions with other US LNG companies like Tellurian and NextDecade for potential long-term gas supply agreements and equity stakes in their respective projects.

Sempra’s proposed Phase 2 expansion at Port Arthur LNG aims to incorporate up to two liquefaction trains capable of producing a total of 13 million tons per annum of LNG.

Attribution: Reuters.