Sempra Infrastructure and Williams pen preliminary LNG deal

US LNG firm Sempra Infrastructure, a unit of Sempra, has entered into a heads of agreement with compatriot pipeline firm Williams for the offtake of liquefied natural gas from two projects.

The deal contemplates negotiation and finalization of two 20-year long-term sale and purchase agreements for about three million tonnes per annum of LNG, according to a statement by Sempra Infrastructure.

Sempra Infrastructure said the supplies would come from the Port Arthur LNG project under development in Jefferson County, Texas, and the Cameron LNG Phase 2 project under development in Hackberry, Louisiana.

The agreement also contemplates the negotiation of a separate natural gas sales agreement for about 0.5 billion cubic feet per day (Bcfd) to be delivered in the Gillis, Louisiana area, as feed gas supply for the referenced LNG projects, it said.

Sempra Infrastructure is planning to take a final investment decision for the first phase of its proposed Port Arthur liquefaction project in the first quarter of 2023.

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.

As per the Cameron expansion project, the firm aims to take a final investment decision in 2023.

The expansion would add the fourth train with a capacity of about 6.75 mtpa to the existing three-train 12 mtpa liquefaction facility.

Pipeline projects

Besides LNG offtake, Sempra Infrastructure and Williams also agreed to develop associated natural gas pipeline projects to further connect abundant US natural gas supplies in the Gulf Coast region to markets around the world.

The two firms anticipate forming a strategic joint venture to own, expand and operate the existing 2.35 Bcf/d Cameron Interstate Pipeline that is expected to deliver natural gas to the Cameron expanion project.

In addition to this project, the JV would own the proposed Port Arthur Pipeline Louisiana Connector that is expected to deliver natural gas to the proposed Port Arthur LNG facility, Sempra Infrastructure said.

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