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Sempra Energy signs Texas LNG Project agreement

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LNG Industry,

Sempra Energy has announced that its Sempra LNG & Midstream unit has entered into a Project Development Agreement with a subsidiary of Woodside Petroleum Ltd to advance the development of the proposed Port Arthur LNG natural gas liquefaction facility in Port Arthur, Texas, US.

The new agreement expands on the MoU previously signed by the parties in June 2015 and provides a framework regarding how Sempra LNG & Midstream and Woodside will contribute their experience and share the costs related to the development, technical design, permitting and commercial development of the liquefaction project.

"This agreement continues to build on our experience developing safe, reliable energy infrastructure in North America and on Woodside's core strengths in construction and operation of LNG assets," said Octavio MC Simoes, President of Sempra LNG & Midstream. "We are confident that, together, we can develop a facility that will meet the highest standards of LNG supply for the global market."

The proposed Port Arthur LNG liquefaction project, located at a site previously permitted for an LNG regasification terminal along the Sabine-Neches Ship Channel, initially would be designed to include two natural gas liquefaction trains with a total export capability of approximately 10 million tpy.

In 2015, Port Arthur LNG obtained approval from the US Department of Energy (DOE) to export up to 10 million tpy of domestically produced LNG to all current and future Free Trade Agreement countries; the authorisation to export LNG to countries with which the US does not have a Free Trade Agreement is pending review by the DOE. In March 2015, Port Arthur LNG initiated the pre-filing process with the Federal Energy Regulatory Commission, which is anticipated to be completed later this year.

Any development of the project remains contingent upon completing required commercial agreements; acquiring all necessary permits and approvals; securing financing commitments and potential incentives; achieving other customary conditions; and making a final investment decision to proceed.

Edited from press release by

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