Sempra Infrastructure, a subsidiary of Sempra, has agreed to supply ENGIE with LNG extracted from its currently developing Port Arthur LNG Project, Sempra announced Dec. 6.
Outlined under the long-term sale and purchasing agreement, ENGIE will buy approximately 0.875 million tonnes per annum (mtpa) of LNG for 15 years. It will be delivered on a free-on-board basis and sourced from natural gas producers certified under ESG criteria from an independent third party.
The Port Arthur LNG project by Sempra Infrastructure is a Southeast Texas natural gas liquefaction and export terminal with access to the Gulf of Mexico. Its development is conditional upon several factors, including fulfilling required commercial agreements, attaining permits and financing and making a final investment decision.
Its Phase 1 facilities will include up to two natural gas liquefaction trains, LNG storage tanks and associated facilities capable of producing 13.5 mtpa of LNG.
"ENGIE is a leader in Europe's energy transition and a great addition to our Port Arthur LNG customer portfolio," said Sempra CEO Justin Bird. "We are excited to work with ENGIE to deliver reliable energy resources like LNG and contribute to the security of natural gas supply to their clients while supporting both companies' ESG commitments.”
ENGIE and Sempra’s agreement also outlines greenhouse gas emissions reduction, mitigation strategies and a continuous improvement approach as ways to help lower the carbon intensity of LNG produced from the Port Arthur Phase 1 LNG project.
Sempra has also entered into long-term agreements with ConocoPhillips and INEOS for the sale and purchase of approximately 5.0 mtpa and 1.4 mtpa of LNG respectively.
To achieve its goal of making a final investment decision for Phase 1 in the first quarter of 2023, Sempra has also finalized an engineering, procurement and construction contract with Bechtel Energy for Port Arthur LNG Phase 1, which it announced recently.
Sempra also has the similarly sized Port Arthur LNG Phase 2 project under active marketing and development.
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