North American energy supplier Sempra Infrastructure secured two long-term sale and purchase agreements (SPA) with France’s Engie and the UK-based Ineos for liquefied natural gas (LNG) from Phase One of its Port Arthur LNG project under development in Jefferson County, Texas.
Sempra said on 6 December that Engie agreed to purchase 0.875 mtpa of LNG for 15 years 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.
As part of the agreement, the companies could also work together to explore ways to lower the carbon intensity of LNG produced from the Port Arthur Phase 1 LNG project through greenhouse gas emission reduction, mitigation strategies, and a continuous improvement approach.
“Engie is a leader in Europe’s energy transition and a great addition to our Port Arthur LNG customer portfolio,” said Justin Bird, CEO of Sempra Infrastructure. “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.”
On 3 December Sempra said that Ineos agreed to purchase 1.4 mtpa of LNG for 20 years on a free-on-board basis. The companies also signed a nonbinding head of agreement for Ineos to potentially purchase an additional 0.2 mtpa of LNG from Phase 2 of the Port Arthur LNG project under development.
Sempra’s Bird said that the company is “excited to finalize its commercial relationship with Ineos as a valued long-term LNG off-taker from the Port Arthur LNG Phase 1 development project.”
These two SPAs follow another announced by Sempra on 22 November that it had executed a 20-year SPA with ConocoPhillips for 5 mtpa of LNG from the project. Additionally, ConocoPhillips acquired 30% of the equity in the first phase of the project. The companies also signed a natural gas supply management agreement through which ConocoPhillips will manage the feed-gas supply requirements for the first phase.
The Port Arthur LNG Phase 1 project was permitted in 2019 and is expected to include two natural gas liquefaction trains and LNG storage tanks and associated facilities capable of producing, under optimal conditions, up to about 13.5 mtpa of LNG, according to Sempra. A similarly sized Port Arthur LNG Phase 2 project is under active marketing and development.
Sempra said it is focused on completing the remaining steps necessary to achieve its goal of making a final investment decision for Phase 1 of the liquefaction project in the first quarter of 2023, with first cargo deliveries expected in 2027.
