Aramco and Sempra agree to purchase and sell 5 million tons per year of LNG from Port Arthur Phase 2, with Aramco holding a 25% stake.
The state oil company of Saudi Arabia, Aramco and the North American infrastructure company Sempra have announced the signing of a non-binding agreement for the purchase and sale of five million tons per year of liquefied natural gas (LNG) from Phase 2 of the Port Arthur project, in Texas, for a period of 20 years. This agreement also includes Aramco’s 25% equity stake in the project.
Both companies expressed their intention to make this agreement binding and explore more business together. Nasir K. Al Naimi, President of Aramco Upstream, said this agreement strategically positions Aramco to expand its gas portfolio and meet the growing global demand for low-carbon energy.
This announcement is part of Aramco’s strategy to reduce its dependence on oil and become a world leader in LNG.
On the other hand, Jeffrey W. Martin, president and CEO of Sempra, commented that the Port Arthur expansion will allow US natural gas to be distributed to global energy markets, improving energy security and providing a low-emission alternative to coal for the production of electricity.
Port Arthur LNG is a natural gas liquefaction and export terminal located in southeast Texas, with direct access to the Gulf of Mexico. Phase 1 of the project is currently under construction, while Phase 2 is an expansion that will include up to two additional trains capable of producing up to 13 million tonnes annually.
