Sempra Infrastructure, a subsidiary of Sempra, has announced that it has entered into a heads of agreement (HOA) with RWE Supply & Trading, a subsidiary of RWE, for the purchase of approximately 2.25 million tpy of LNG. The LNG is to be supplied on a long-term, free-on-board basis from the Port Arthur LNG Phase 1 project under development in Jefferson County, Texas, US.
"Sempra Infrastructure's LNG projects are uniquely positioned to help provide US LNG to support the energy security of America's allies in Europe, while also accelerating the transition to a lower carbon future. We are excited about the opportunity to work with one of Germany's top power producers to achieve these dual goals," said Justin Bird, CEO of Sempra Infrastructure. "We see opportunities to work together with RWE across the energy transition, including LNG, hydrogen and renewables. With today's agreement, we make significant progress toward the development of our Port Arthur LNG project and remain committed to lowering greenhouse gas (GHG) emissions across the LNG value chain through the use of new technologies and the improvement of key processes."
Andree Stracke, CEO of RWE Supply & Trading said, "As RWE, we are very pleased to join forces with Sempra Infrastructure. Our partnership can contribute largely to securing significant LNG volumes for the RWE portfolio on a long-term basis while building the basis for supplying low carbon gas in the future."
The HOA contemplates the negotiation and finalisation of a definitive 15-year LNG sale and purchase agreement for 2.25 million tpy to be delivered from the Port Arthur LNG project. Additionally, Sempra Infrastructure and RWE have agreed to work toward a broad framework for the reduction, mitigation, and reporting of GHG emissions associated with deliveries of LNG from the Port Arthur LNG project, including addressing the use of responsibly sourced natural gas as part of the project's feed gas supply and renewable energy as part of the project power mix.
Phase 1 of the Port Arthur LNG project is fully permitted and is expected to include two liquefaction trains and LNG storage tanks, as well as associated facilities capable of producing, under optimal conditions, up to approximately 13.5 million tpy of LNG.
The referenced HOAs are preliminary, non-binding arrangements, and the development of the Port Arthur LNG project remains subject to a number of risks and uncertainties, including, among others, reaching definitive agreements, maintaining all necessary permits, finalising engineering and construction arrangements, obtaining financing and incentives, and reaching a final investment decision.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/25052022/rwe-and-sempra-infrastructure-ink-lng-heads-of-agreement/