Sempra LNG has signed a non-binding Memorandum of Understanding (MoU) with an affiliate of Australian Woodside Petroleum for forming a potential partnership or joint venture to develop Sempra’s proposed $8.5bn Port Arthur liquefaction project in Texas, US.
Sempra LNG is a unit under US based natural gas utilities holding company Sempra Energy.
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According to the agreed terms of the MoU, the firms will start discussions and assessments for the potential development of the natural gas liquefaction project at Port Arthur, before they mutually decide to go ahead with it.
Sempra LNG commercial & development vice president E. Scott Chrisman said: "Sempra Energy and Woodside bring together an extraordinary complementary set of experience and skills from two world-class organisations.
"We look forward to engaging Woodside in discussions regarding the proposed Port Arthur liquefaction project."
The proposed project will be located at a site which has received permissions for LNG regasification terminal earlier.
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By GlobalDataIt is likely to include two natural gas liquefaction trains having combined export capability of around ten million metric tons annually, or 1.4 billion ft3 per day.
The project will have provisions for LNG storage tanks and marine facilities for LNG ship berthing and loading.
Further development of the proposed project is dependent on completion of necessary commercial agreements, acquiring of permits and approvals, securing financing commitments and potential tax incentives along with fulfilment of other customary conditions and final investment decision.
Image: Aerial view of Port Arthur in Texas, US. Photo: courtesy of Ente75 / Wikipedia.
