Sempra Infrastructure, a subsidiary of US-based Sempra, has signed an agreement to supply liquefied natural gas (LNG) to French firm Engie from Phase 1 of its proposed Port Arthur LNG project in the US.
Under the 15-year sale and purchase agreement (SPA), Engie will receive approximately 0.875 million tonnes per annum (Mtpa) of LNG, which will be delivered on a free-on-board basis.
The agreement also provides a framework to explore solutions to reduce LNG carbon intensity produced from the Port Arthur Phase 1 LNG project.
Some of the solutions being considered include a reduction of GHG emissions, mitigation strategies, and a continuous improvement approach.
Sempra Infrastructure CEO Justin Bird said: “Engie is a leader in Europe’s energy transition and a great addition to our Port Arthur LNG customer portfolio.
“We are excited to work with Engie to deliver reliable energy resources like LNG and contribute to the security of natural gas supply to their clients while supporting both companies’ ESG commitments.”
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Sempra Infrastructure recently selected Bechtel Energy for the engineering, procurement, and construction of the Port Arthur LNG Phase 1 project, as well as signed LNG supply agreements with ConocoPhillips and Ineos.
Being built in Jefferson County, Texas, the Port Arthur LNG Phase 1 project will have an LNG production capacity of 13.5Mtpa.
The phase I project will comprise two natural gas liquefaction trains, LNG storage tanks, and associated facilities.
The Port Arthur LNG project development is subject to securing all necessary permits, and obtaining financing, among other factors.