US LNG company Sempra Infrastructure has signed a long-term sale and purchase agreement (SPA) with French utility firm Engie for the supply of liquefied natural gas (LNG) from Phase 1 of its proposed Port Arthur LNG project under development in Jefferson County, Texas.
Engie will purchase approximately 0.875 million tonnes per annum (mtpa) of LNG for 15 years , delivered on a free-on-board basis, and sourced from natural gas producers whose gas has been certified by an independent third party in accordance with environmental, social and governance (ESG) performance criteria.
At the same time, the agreement provides a framework to explore ways to lower the carbon intensity of LNG produced from the Port Arthur Phase 1 LNG project through greenhouse gas (GHG) emission reduction, mitigation strategies and a continuous improvement approach.
Commenting on the deal, Justin Bird , CEO of Sempra Infrastructure, said: “Engie is a leader in Europe’s energy transition and a great addition to our Port Arthur LNG customer portfolio. 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.”
The new SPA comes on the heels of the recent long-term agreements that Sempra signed with ConocoPhillips and INEOS for the sale and purchase of approximately 5.0 mtpa and 1.4 mtpa of LNG respectively.
In addition to this, an engineering, procurement and construction (EPC) contract for the project was finalised with Bechtel Energy.
The next step will see the developer completing the remaining steps necessary to achieve its goal of making a final investment decision for Phase 1 of the liquefaction project in the first quarter of 2023.
The Port Arthur LNG Phase 1 project is permitted and expected to include two natural gas liquefaction trains and LNG storage tanks and associated facilities capable of producing, under optimal conditions, up to approximately 13.5 mtpa of LNG.
A similarly sized Port Arthur LNG Phase 2 project is also competitively positioned and under active marketing and development.