South Korea’s Kogas may join Port Arthur LNG export project

Image courtesy of Port Arthur LNG

San Diego-based Sempra Energy and Australian LNG player Woodside have signed a memorandum of understanding with South Korea’s Kogas regarding the development of the proposed Port Arthur LNG export project in Texas.

The deal provides a framework for cooperation and joint discussion by the parties regarding key aspects of the Port Arthur LNG project.

This includes engineering and construction works, operations and maintenance activities, feed gas sourcing, offtake of LNG and Kogas as a potential purchaser of LNG from, and equity participant in, the Port Arthur project, according to a joint statement.

The deal does not commit any party to buy or sell LNG or otherwise participate in the Port Arthur LNG project, the statement said.

“We’re pleased to be collaborating with one of the world’s largest LNG buyers and importers,” said Octávio M.C. Simões, president of Sempra LNG & Midstream.

“Kogas’ expertise and knowledge of the LNG market will complement Sempra’s and Woodside’s extensive natural gas infrastructure development and combined marketing and operational experience to continue advancing the Port Arthur LNG project,” he added.

In February 2016, Sempra LNG & Midstream, LLC and Woodside Energy (USA), Inc. signed a project development agreement that provides a framework for the sharing of costs of the Port Arthur LNG project related to the development, technical design, permitting and marketing of the proposed project.

The proposed Port Arthur LNG project is designed to include two natural gas liquefaction trains, LNG storage tanks, marine berths and ancillary facilities.


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