Sempra LNG, Aramco Services sign Texas LNG project deal

Sempra LNG signed an Interim Project Participation Agreement (IPPA) with Aramco Services Co., a subsidiary of Saudi Aramco, for the Port Arthur LNG export project in Jefferson County, Texas.

“The multibillion-dollar initiative is among the largest liquefied natural gas (LNG) projects in development anywhere in the world and is expected to deliver a cleaner energy supply to foreign markets, while creating high-skilled jobs right here at home," Jeffrey W. Martin, chairman and CEO of Sempra Energy, said.

Fully permitted, the initial phase of the project is expected to include 2 liquefaction trains, up to 3 LNG storage tanks and associated facilities to enable the export of approximately 11 metric tons per annum (Mtpa) of LNG on a long-term basis.

The agreements in the Port Arthur LNG export project remain subject to finalization and corporate approvals by each party in its sole discretion before they are executed, the subsidiary of US-based Sempra Energy said in a statement.

In May 2019, both the companies had signed a heads of agreement for the purchase of 5 Mtpa of LNG and a 25% equity investment in the Port Arthur LNG project.