Sempra, ENGIE sign Port Arthur LNG offtake agreement

Sempra Infrastructure, a subsidiary of Sempra, has entered into a 15-year agreement with ENGIE SA for supply of 0.875 million tonnes/year (tpy) of LNG from the 13.5-million tpy Phase 1 of Sempra’s Port Arthur LNG project under development in Jefferson County, Tex. The LNG will be supplied free-on-board and sourced from natural gas producers whose gas has been certified by an independent third party in accordance with ESG performance criteria, Sempra said in a release Dec. 6.

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, the company said.

Sempra earlier this year finalized an engineering, procurement, and construction contract with Bechtel Energy for Phase 1 and recently entered into agreements with ConocoPhillips and INEOS for the sale of 5 million tpy and 1.4 million tpy, respectively (OGJ Online, Oct. 20, 2022; Nov. 23, 2022; Dec. 1, 2022). The company has targeted a first-quarter 2023 final investment decision for Phase 1, with first cargo deliveries expected in 2027.

Port Arthur LNG Phase 1 is permitted and expected to include two 6.75-million tpy liquefaction trains, LNG storage tanks, and associated infrastructure. Port Arthur LNG Phase 2 will be similarly sized, with Sempra actively marketing its output.

Development of the Port Arthur LNG project is contingent upon completing the required commercial agreements, securing all necessary permits, obtaining financing, and reaching a final investment decision, among other factors.