Saudi Aramco Services Company, a subsidiary of Saudi Aramco, and Sempra LNG, Sempra Energy’s subsidiary, inked heads of agreement (HoA), according to a company press release on May 22.
It is expected that under the HoA, a 20-year liquefied natural gas (LNG) sale-and-purchase agreement (SPA) can be finalized. Under the SPA, five million tonnes per annum (Mtpa) of LNG offtake from Phase 1 of the Port Arthur LNG export-project under development.
“The agreement with Sempra LNG is a major step forward in Saudi Aramco’s long-term strategy to become a leading global LNG player. With global demand for LNG expected to grow by around 4% per year, and likely exceed 500 million metric tons a year by 2035, we see significant opportunities in this market,” said Amin Nasser, President and CEO of Saudi Aramco.
Meanwhile, Jeffrey W. Martin, Chairman and CEO of Sempra Energy said, “We are pleased to partner with affiliates of Saudi Aramco, the largest oil & gas company in the world, to advance the development of Sempra LNG’s natural gas liquefaction facility in Texas and enable the export of American natural gas to global markets.”
Phase 1 project of Port Arthur LNG is expected to contain two liquefaction trains, up to three LNG storage tanks and associated facilities that will enable exporting around 11 Mtpa of LNG on a long-term basis.