RWE and Sempra firm up 2.25 mtpa Port Arthur LNG deal

US LNG company Sempra Infrastructure has finalised a long-term sale and purchase agreement with RWE Supply & Trading, a subsidiary of RWE, for the supply of liquefied natural gas (LNG) from its Port Arthur LNG Phase 1 project under development in Jefferson County, Texas.

Under the agreement, approximately 2.25 million tonnes per annum (mtpa) will be delivered on a free-on-board basis for 15 years.

The agreement is said to also provide a framework to explore ways to lower the carbon intensity of LNG produced from the Port Arthur LNG Phase 1 project through GHG emission reduction, mitigation strategies and a continuous improvement approach.

To remind, the parties entered into heads of agreement (HOA) for the LNG supply from the Port Arthur project in May this year.

“We could not be more excited to finalise our agreement with RWE as we continue supporting the energy security and environmental goals of our European customers”, said Justin Bird, CEO of Sempra Infrastructure.

“Because of its scale, location and permitting status, Port Arthur LNG is benefitting from a lot of commercial momentum with nearly all the projected off-take capacity for Phase 1 now under long-term agreements with some of the leading global energy companies. Today’s announcement moves us one step further along in the process of making Port Arthur LNG a reality.”

Sempra Infrastructure recently entered into long-term agreements with ConocoPhillips, INEOS and ENGIE for the sale and purchase of approximately 7.3 mtpa of LNG from the proposed Phase 1 project.

The company is focused on completing the remaining steps necessary to achieve its goal of making a final investment decision for Phase 1 of the liquefaction project in the first quarter of 2023, with the first cargo deliveries expected in 2027.