Sempra and Engie seal Port Arthur LNG supply deal

French energy firm Engie has agreed to buy liquefied natural gas for a period of 15 years from Sempra Infrastructure’s proposed Port Arthur LNG project in Texas.

The two firms signed a long-term sale and purchase agreement (SPA) for the supply of 0.875 million tonnes per annum on a FOB basis from the first phase of the Porth Artur LNG project, according to a statement by Sempra Infrastructure, a unit of Sempra.

Sempra Infrastructure said that natural gas would be sourced from producers whose gas had been certified by an independent third party in accordance with environmental, social and governance (ESG) performance criteria.

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

Second LNG supply deal in a week

This is the second LNG SPA Sempra infrastructure announced in a week following the deal with UK’s Ineos.

Ineos will buy 1.4 million of tonnes per year from the first phase of the Porth Artur LNG project for a period of 20 years and plans to deliver the fuel to the Brunsbuettel facility in Germany.

Sempra Infrastructure is planning to take a final investment decision for the first phase of the Port Arthur liquefaction project in Texas in the first quarter of 2023, with first cargo deliveries expected in 2027.

The company recently announced that it had finalized its fixed-price engineering, procurement and construction (EPC) contract for Port Arthur LNG Phase 1 with Bechtel.

The two firms amended and restated the fixed-price contract which now is worth about $10.5 billion.

The liquefaction project would consist of two liquefaction trains each capable of producing up to 6.73 mtpa. Sempra Infrastructure also plans a similarly sized second phase of the project.

Sempra Infrastructure and ConocoPhillips recently signed a 20-year sale and purchase agreement for 5 million tonnes per annum of LNG from the first phase of the project.

In addition, the two firms have entered into an equity sale and purchase agreement whereby ConocoPhillips will acquire 30 percent of the equity in the first phase of the project.

Sempra also signed deals with German energy firm RWE, and Poland’s dominant gas firm and LNG importer, PGNiG, for volumes from the first phase of the LNG project.

Engie’s LNG moves

Engie has been quite active in the LNG industry this year and besides this US deal it signed up for more volumes from US LNG producing giant Cheniere.

The company’s unit recently booked long-term regasification capacity at Elengy’s Fos Cavaou terminal near the southern city of Marseille while the firm also took 1 bcm per year at Gasunie’s new FSRU-based facility in the Dutch port of Eemshaven.

Engie is also part of the government-backed FSRU-based import facility in Germany’s Wilhelmshaven.

The project developed by E.ON, TES, and Engie will feature Excelerate Energy’s FSRU Excelsior and should go online next year.

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