Sempra Infrastructure has announced an agreement to sell 2.25 million tonnes per annum of liquefied natural gas to German utility RWE from its Port Arthur LNG plant in development in Texas.
The Sempra subsidiary is working toward a final investment decision for Port Arthur Phase 1 in the first quarter 2023, with first cargo deliveries expected in 2027.
The US LNG exporter previously entered into long-term sale-and-purchase agreements with ConocoPhillips, INEOS, and Engie to sell about 7.3 million tpa of LNG from the facility.
Under the RWE agreement, Sempra will deliver the LNG on a free-on-board basis for 15 years. The agreement will also look at the possibility of lowering the carbon intensity of the LNG production.
"We could not be more excited to finalise our agreement with RWE as we continue supporting the energy security and environmental goals of our European customers," said Justin Bird, chief executive of Sempra Infrastructure.
"Because of its scale, location and permitting status, Port Arthur LNG is benefitting from a lot of commercial momentum with nearly all the projected off-take capacity for Phase 1 now under long-term agreements with some of the leading global energy companies. Today's announcement moves us one step further along in the process of making Port Arthur LNG a reality."
Phase 1 of Port Arthur LNG will include two natural gas liquefaction trains and LNG storage tanks and is expected to have the capacity to produce 13.5 million tpa of LNG. A second development phase will be similar in size.
"Our partnership with Sempra Infrastructure, one of the leading companies for LNG infrastructure in the US, is another important step to diversify Germany's gas supply and thus contributes to enhancing security of supply in Europe on a long-term basis," said Andree Stracke, chief executive of RWE Supply & Trading.