Sempra inks deal with Entergy to secure renewable power for Port Arthur LNG

US LNG firm Sempra Infrastructure, a unit of Sempra, has entered into a deal with a subsidiary of compatriot electricity firm Entergy, as it looks to secure renewable power for its planned 13.5 mtpa Port Arthur liquefaction project in Texas.

According to a statement, Sempra Infrastructure and Entergy Texas a memorandum of understanding (MOU) to develop options designed to accelerate the deployment of new renewable energy generation resources.

In addition, the two firms will work to increase the resiliency of power supply in Entergy Texas’ Southeast Texas service area, where Sempra Infrastructure’s facilities are under development.

Sempra Infrastructure is developing the Port Arthur LNG project in Jefferson County, Texas.

Additionally, the firm is working on the proposed Port Arthur Pipeline Louisiana Connector, which would transport and provide natural gas to the LNG project.

The first phase would include two natural gas liquefaction trains and LNG storage tanks, as well as associated facilities for a total capacity of 13.5 mtpa. It also plans a similarly sized second phase of the project.

US energy giant ConocoPhillips recently signed a preliminary deal with Sempra Infrastructure, a unit of Sempra, to buy a 30 percent direct equity holding in the project and an LNG offtake equivalent to about 5 mtpa.

Prior to this HOA, Sempra signed deals with German energy firm RWEUK’s Ineos, and Poland’s dominant gas firm and LNG importer, PGNiG, for volumes from the first phase of the LNG project.

Including this deal with ConocoPhillips, these HOAs total 9.65 Mtpa to 11.65 Mtpa of LNG from the first phase of the development.

Renewable electricity plan

The memorandum between Sempra Infrastructure and Entergy Texas is non-binding and sets forth a framework for the two firms to collaborate on developing a renewable electricity plan, the statement said.

This includes 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.

Entergy Texas plans to invest over $2.5 billion by the end of 2024, including into a 1,215-megawatt, dual-fuel combined cycle power facility that will have the capability to use a combination of natural gas and hydrogen.

The firm has also entered into a 20-year power purchase agreement with Umbriel Solar for 150 megawatts of solar and is evaluating additional solar resources, the statement said.

“Sempra Infrastructure has greenhouse gas reduction goals for our facilities through the utilization of lower-carbon technologies, including electrification of key processes, carbon dioxide sequestration, and the use of cost-effective renewable energy,” Martin Hupka, Sempra Infrastructure’s president of LNG, said.

“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,” Hupka said.

This is the second memorandum 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 deal with Entergy Louisiana to collaborate on developing additional options for renewable energy procurement for Sempra Infrastructure affiliated facilities in Louisiana.

The firm is planning to use electric drive (E-Drive) motor technology instead of the Frame 7 gas turbine drives as part of its proposed Cameron LNG expansion project.

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