Sempra LNG and Aramco Services Company, have signed an Interim Project Participation Agreement (IPPA) for the Port Arthur LNG export project under development in Jefferson County, Texas.
The IPPA represents another milestone for both companies after having signed a HoAs in May last year for the purchase of 5 Mtpa of LNG and a 25 per cent equity investment in the Port Arthur LNG project.
The initial phase of the Port Arthur LNG project is fully permitted and it is expected to include two liquefaction trains, up to three LNG storage tanks and associated facilities to enable the export of approximately 11 Mtpa of LNG on a long-term basis. Earlier this year, Sempra LNG initiated the Federal Energy Regulatory Commission pre-filing review for a subsequent potential expansion of the proposed project that would add two additional liquefaction trains for a total export capacity of approximately 22 Mtpa of LNG.
“Port Arthur LNG is expected to play a critical role in helping shape the future of global energy trade,” said Jeffrey W. Martin, chairman and CEO of Sempra Energy. “This multibillion-dollar initiative is among the largest LNG projects in development anywhere in the world and is expected to deliver a cleaner energy supply to foreign markets, while creating important, high-skilled jobs right here at home.”
The definitive agreements in the Port Arthur LNG export project remain subject to finalisation and corporate approvals by each party in its sole discretion before they are executed. Each party’s ultimate participation in the Port Arthur LNG export project also remains subject to the execution of related agreements and the fulfilment or waiver of certain conditions precedent contemplated by these agreements, including the condition that each party shall have taken a final investment decision (FID) with respect to its investment in the project at its sole discretion. The IPPA sets forth certain mechanisms for the parties to work towards these and other pre-FID activities.
Port Arthur LNG is one of Sempra LNG’s five strategically located LNG development opportunities in North America and is a component of Sempra LNG’s goal of developing the LNG infrastructure needed to export 45 Mtpa of clean natural gas to the global LNG market.
Development of Sempra Energy’s LNG export projects is contingent upon obtaining binding customer commitments, completing the required commercial agreements, securing all necessary permits, obtaining financing and reaching final investment decisions, among other factors.
For more information visit www.sempra.com
