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Sempra Infrastructure and Entergy Texas sign MOU

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Sempra Infrastructure, a subsidiary of Sempra, and Entergy Texas, Inc. have announced they have entered into a memorandum of understanding (MOU) to develop options designed to accelerate the deployment of new renewable energy generation resources and to increase the resiliency of power supply in Entergy Texas’ Southeast Texas service area, US, where Sempra Infrastructure’s facilities are under development.

“We look forward to working collaboratively with Entergy Texas to achieve both of our companies’ sustainability goals,” said Martin Hupka, President of LNG and Net Zero Solutions for Sempra Infrastructure. “Sempra Infrastructure has greenhouse gas reduction goals for our facilities through the utilisation of lower-carbon technologies, including electrification of key processes, carbon dioxide sequestration, and the use of cost-effective renewable energy, and we are excited about the opportunity to jointly develop a renewable electricity plan that could provide an efficient, resilient and economic path to achieve our goals.”

The referenced MOU is non-binding and sets forth a framework for Entergy Texas and Sempra Infrastructure to collaborate on developing a renewable electricity plan, including an implementation schedule for renewable energy procurement that would supply Sempra Infrastructure affiliated facilities in the state, subject to approval by the Public Utility Commission of Texas.

Sempra Infrastructure is developing the Port Arthur LNG project in Jefferson County, Texas. Phase 1 of the Port Arthur LNG project is permitted and expected to include two natural gas 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. A similarly sized Phase 2 project is also under active marketing and development.

Additionally, Sempra Infrastructure is developing the proposed Port Arthur Pipeline Louisiana Connector, which would transport and provide natural gas to the proposed Port Arthur LNG project and exploring additional opportunities to co-locate lower-carbon hydrogen production and storage at or near its other facilities.

“We look forward to partnering with Sempra Infrastructure to help reduce their emissions through clean electrification and integration of renewable energy into their operations,” said Eliecer Viamontes, President and CEO of Entergy Texas. “We seek to be a strategic partner with our customers and communities to help meet their sustainability goals while increasing the reliability and resiliency of our system.”

Entergy Texas plans to invest over US$2.5 billion by the end of 2024 to build a cleaner, more resilient and sustainable energy future for Southeast Texas. Last year, Entergy Texas filed a request for approval of the Orange County Advanced Power Station, a 1215-MW, dual-fuel combined cycle power facility that will have the capability to use a combination of natural gas and hydrogen. Electric generation using hydrogen as the fuel source produces zero-carbon emissions.

Entergy Texas also has entered into a 20-year power purchase agreement with Umbriel Solar for 150 MW of solar. The facility will be in Polk County, Texas and is expected to be operational beginning in 2024. Entergy Texas is evaluating additional solar resources that would provide economical, clean energy for customers, with plans to reach over 500 MW by 2025 and more by 2030. These resources will increase the diversity of Entergy Texas’ power generation portfolio.

This is the second MOU Sempra Infrastructure has signed with energy providers along North America’s Gulf Coast to advance the integration of renewable energy into its projects. Earlier this year, the company signed an MOU with Entergy Louisiana to collaborate on developing additional options for renewable energy procurement for Sempra Infrastructure affiliated facilities in Louisiana, US.

The development of Sempra Infrastructure’s projects in Texas and Louisiana is subject to a number of risks and uncertainties, including reaching definitive customer, partnership, construction and other agreements, securing all necessary permits, obtaining financing and incentives, and reaching a final investment decision.

Read the article online at: https://www.lngindustry.com/special-reports/03082022/sempra-infrastructure-and-entergy-texas-sign-mou/

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