Saudi oil and gas major Aramco has entered into a non-binding HOA with US energy infrastructure company Sempra for the purchase of five million tonnes per annum (mtpa) of LNG.  

This offtake agreement, which is set for a 20-year term, is for the Port Arthur LNG phase two expansion project. 

The HOA also includes a potential 25% stake for Aramco in the second phase project’s equity. 

The HOA is a precursor to a binding LNG sale and purchase agreement and definitive equity agreements, which are subject to certain conditions.  

Located in south-east Texas, Port Arthur LNG is a natural gas liquefaction and export terminal, which provides access to the Gulf of Mexico. 

The first phase of Port Arthur LNG is presently under development, comprising two trains, two LNG storage tanks and associated facilities.  

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The Port Arthur LNG Phase 2 expansion is expected to add up to two additional trains, with a production capacity of up to 13mtpa, to the existing infrastructure. 

Sempra Infrastructure’s Port Arthur Energy Hub, which houses the LNG facility, could potentially expand to eight trains, making it one of the largest LNG export facilities globally.  

In addition to the LNG expansion, Sempra Infrastructure is focusing on projects within the Port Arthur Energy Hub that cater to the growing demand for lower-carbon fuels and aim at reducing carbon intensity.  

The proposed Titan Carbon Sequestration project is a part of these initiatives. 

Aramco Upstream president Nasir K Al-Naimi said: “We are excited to take this next step into the LNG sector. As a potential strategic partner in the Port Arthur LNG Phase 2 project, Aramco is well placed to grow its gas portfolio with the aim of meeting the world’s growing need for lower-carbon sources of energy.  

“This agreement is a major step in Aramco’s strategy to become a leading global LNG player.” 

Sempra chairman and CEO Jeffrey Martin said: “The planned expansion of Port Arthur LNG would help facilitate the broad distribution of US natural gas across global energy markets. By expanding the global reach of the Port Arthur LNG facility, we have the opportunity to improve energy security, while providing a lower-carbon alternative to coal for electricity production.” 

Earlier in the month, Aramco secured a 20-year LNG supply agreement with NextDecade for LNG from the proposed fourth train at the Rio Grande LNG Facility in Brownsville, Texas.