Saudi Arabia's national oil company Aramco and US-based energy firm Sempra inked a non-binding deal for liquefied natural gas (LNG) supply from Port Arthur LNG's expansion spanning 20 years, on Wedneday.
The agreement covers a 20-year sale and purchase agreement for the offtake of 5 million tonnes per annum (Mtpa) of LNG from the Port Arthur LNG Phase 2 expansion project in Southeast Texas.
Port Arthur LNG, a Texas gas export terminal under construction, is expanding with Phase 2 to add up to two new sections for a potential 13 Mtpa of LNG production, according to the statement.
The deal further contemplates Aramco's 25% participation in the project-level equity of Phase 2.
'The planned expansion of Port Arthur LNG would help facilitate the broad distribution of US natural gas across global energy markets,' Jeffrey W. Martin, Sempra chairman and CEO, said.
'By expanding the global reach of the Port Arthur LNG facility, we have the opportunity to improve energy security while providing a lower-carbon alternative to coal for electricity production,' Martin added.
Nasir K. Al-Naimi, Aramco's upstream president, said being a potential strategic partner in the Port Arthur LNG Phase 2 project gives Aramco the opportunity to 'grow its gas portfolio with the aim of meeting the world’s growing need for lower-carbon sources of energy.'
By Handan Kazanci
Anadolu Agency
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