Sempra Infrastructure and JERA sign HOA for US LNG supply
Published by Jessica Casey,
Editor
LNG Industry,
Sempra Infrastructure, a subsidiary of Sempra, has executed a non-binding heads of agreement (HOA) with JERA Co. Inc. for a 20-year sale and purchase agreement (SPA) for LNG offtake of 1.5 million tpy on a free on-board basis from the Port Arthur LNG Phase 2 development project in Jefferson County, Texas.
“We are pleased to collaborate with JERA, Japan’s largest power generation company and one of the world’s largest LNG buyers, as they continue to work with the US to diversify their sources to help strengthen the resilience and dependability of their energy supply,” said Justin Bird, CEO of Sempra Infrastructure. “With this announcement, we continue to make steady progress towards reaching a final investment decision for the project, which is expected to extend the reach of US natural gas to global energy markets.”
The proposed Port Arthur LNG Phase 2 development project is competitively positioned and is under active marketing. Future phases are also in the early development stage.
The project has received all its key permits and is expected to include two liquefaction trains capable of producing approximately 13 million tpy of LNG, which could increase the total liquefaction capacity of the Port Arthur LNG facility from approximately 13 million tpy for Phase 1, which is under construction, to up to approximately 26 million tpy.
The project received authorisation from the U.S. Department of Energy in May to export US LNG to countries that do not have a free-trade agreement with the US. The project also received authorisation from the Federal Energy Regulatory Commission in September 2023.
In June 2024, Sempra Infrastructure and a subsidiary of Aramco signed a non-binding HOA contemplating both a long-term LNG offtake agreement and an equity investment in the Port Arthur LNG Phase 2 project. In July 2024, Sempra Infrastructure announced that Bechtel had been selected for a fixed-price engineering, procurement and construction contract for the project.
The Port Arthur LNG Phase 1 project is currently under construction and expected to achieve commercial operation in 2027 and 2028 for trains 1 and 2, respectively. The development of the Port Arthur LNG Phase 2 project remains subject to a number of risks and uncertainties, including completing the required commercial agreements, securing and/or maintaining all necessary permits, obtaining financing and reaching a final investment decision, among other factors.
Read the article online at: https://www.lngindustry.com/liquefaction/12062025/sempra-infrastructure-and-jera-sign-hoa-for-us-lng-supply/
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