Sempra Infrastructurehas entered into another long-term LNG sale and purchase agreement, this time with French utility Engie for the supply of LNG from Phase 1 of its proposed Port Arthur LNG project under development in Jefferson County, Texas
Engie will purchase approximately 0.875M tonnes per annum (mta) of LNG for 15 years, delivered on a free-on-board basis, sourced from natural gas producers whose gas has been certified by an independent third party in accordance with environmental, social and governance (ESG) performance criteria.
The agreement also provides a framework for the two parties to explore ways to lower the carbon intensity of LNG produced from the Port Arthur Phase 1 LNG project through emissions reduction mitigation strategies and a “continuous improvement” approach.
Sempra Infrastructure chief executive Justin Bird remarked, “We are excited to work with Engie to deliver reliable energy resources like LNG and contribute to the security of natural gas supply to their clients while supporting both companies’ ESG commitments.”
Since November, the company has finalised an EPC deal with Bechtel Energy for the Port Arthur project, while signing long-term agreements with ConocoPhillips and INEOS for the sale and purchase of approximately 5 mta and 1.4 mta of LNG respectively.
Sempara said it is now focused on completing the remaining steps necessary to achieve its goal of taking a final investment decision for Phase 1 of the liquefaction project in Q1 2023.
Phase 1 of the Port Arthur 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 mta of LNG.
A similarly sized second phase of the project is also competitively positioned and under active marketing and development.
