U.S. energy company and LNG operator Sempra Energy and energy giant Saudi Aramco have signed heads of agreement (HOA) for the sale and purchase of LNG.
Sempra Energy said on Wednesday that the HOA was signed by two units, Sempra LNG and Aramco Services Company.
The HOA anticipates the negotiation and finalization of a definitive 20-year LNG sale-and-purchase agreement for 5 million tonnes per annum 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 percent equity investment in Phase 1 of Port Arthur LNG.
Amin Nasser, Saudi Aramco’s CEO and president, said: “With global demand for LNG expected to grow by around 4% per year, and likely to exceed 500 million metric tons a year by 2035, we see significant opportunities in this market and we will continue to pursue strategic partnerships which enable us to meet rising global demand for LNG.”
The proposed Port Arthur LNG 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 approximately 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 up to eight liquefaction trains or approximately 45 mtpa of capacity.