Sempra LNG and Aramco Services Company have signed a heads of agreement regarding a sale and purchase agreement for LNG from Port Arthur LNG.
The agreement anticipates the negotiation and finalization of a 20 year LNG sale and purchase agreement for five million tonnes per annum of LNG offtake from the first phase of the Port Arthur LNG export-project under development.
It also includes the negotiation and finalization of a 25% equity investment in phase 1 of Port Arthur LNG.
The 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 11 Mtpa 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 of up to eight liquefaction trains or 45 Mtpa of capacity.
Amin Nasser, Saudi Aramco's CEO and president, says: '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 metric tonnes a year by 2035, we see significant opportunities in this market, and we will continue to pursue strategic partnerships that enable us to meet rising global demand for energy.
Jeffrey Martin, chairman and CEO of Sempra Energy, adds: 'We are pleased to partner with affiliates of Saudi Aramco 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.'
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