Aramco, Sempra announce HoA for equity, offtake from Port Arthur LNG Phase 2

Saudi Aramco and Sempra, one of North America’s leading energy infrastructure companies, announced, today, June 26, that their respective subsidiaries have executed a non-binding Heads of Agreement (HoA) for a 20-year sale and purchase agreement (SPA) for liquefied natural gas (LNG) offtake of 5.0 million tonnes per annum (Mtpa) from the Port Arthur LNG Phase 2 expansion project.

 

The HoA further contemplates Aramco’s 25% participation in the project-level equity of Phase 2, Aramco said in an emailed statement to Argaam.

 

 

The parties expect to execute a binding LNG SPA and definitive equity agreements with terms substantially equivalent to those in the HoA, with the SPA and equity agreements subject to a number of conditions.

 

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 is a competitively positioned expansion of the site to include the addition of up to two trains capable of producing up to 13 million tons per annum.

 

At the heart of Sempra Infrastructure’s flagship Port Arthur Energy Hub, Port Arthur LNG has potential to expand to a total of eight trains, which would position it as one of the world’s most significant LNG export facilities.

 

In May 2019, Aramco and Sempra said that their respective subsidiaries, Sempra LNG and Aramco Services Company, have signed a HoA.

 

The HoA anticipates the negotiation and finalization of a definitive 20-year liquefied natural gas (LNG) sale-and-purchase agreement (SPA) for five million tonnes per annum (Mtpa) of LNG offtake from Phase 1 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.