Sempra Energy and Saudi Aramco have signed an interim participation agreement for the Port Arthur LNG export project in Jefferson County, Texas.
The agreement, which sets out how the companies will work together on pre-final investment activities, represents another milestone for both companies after having signed a heads of agreement in May 2019 for the purchase of five million tonnes per annum of LNG and a 25% equity investment in the Port Arthur LNG project.
The initial phase of the project is fully permitted and is expected to include two liquefaction trains, up to three LNG storage tanks and associated facilities to enable the export of 11 Mtpa of LNG on a long-term basis.
Amin H. Nasser, Saudi Aramco's president and CEO, says: 'The global demand growth for LNG is expected to continue in the coming years, and we see significant opportunities in this market. This agreement with Sempra Energy is another step forward for Saudi Aramco's long-term gas strategy, and toward becoming the global leading integrated energy and chemicals company.
Chairman and CEO of Sempra Energy Jeffrey Martin adds: 'Port Arthur LNG is expected to play a critical role in helping shape the future of global energy trade. This multibillion-dollar initiative is among the largest LNG projects in development anywhere in the world and is expected to deliver a cleaner energy supply to foreign markets, while creating important, high-skilled jobs right here at home.'
The definitive agreements remain subject to finalisation and corporate approvals by each party.
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