Saudi Aramco Strikes Deal with Sempra to Secure LNG Supply
In a significant move, Saudi Aramco has committed to purchasing 5 million tonnes of liquefied natural gas annually from Sempra, a US-based company, for the next 20 years.
Expanding Horizons: Aramco’s Venture into the LNG Sector
The agreement stems from a non-binding Heads of Agreement signed by the subsidiaries of both companies, paving the way for Aramco to receive LNG from the Port Arthur LNG Phase 2 expansion project in Texas.
Strategic Partnership for Energy Security
Port Arthur LNG, located in Southeast Texas with direct access to the Gulf of Mexico, is set to play a crucial role in Aramco’s gas portfolio, with the company holding a 25 percent stake in the Phase 2 project.
Embracing the Transition to Lower-Carbon Energy Sources
Aramco’s foray into LNG aligns with its vision of utilizing cleaner energy alternatives to reduce greenhouse gas emissions and enhance global energy security, marking a significant milestone in the company’s journey to becoming a key player in the global LNG market.
Driving Global Energy Distribution
Sempra’s Chairman and CEO, Jeffrey Martin, highlighted the potential of the planned expansion of Port Arthur LNG to bolster the distribution of US natural gas in international energy markets, offering a greener alternative to coal for electricity generation.
Expansion Plans for Port Arthur LNG
While Phase 1 of the Port Arthur LNG project is currently in progress, Phase 2 aims to further enhance the facility’s capacity by adding up to two additional trains capable of producing 13 million tonnes per year, solidifying its position as a key player in the LNG sector.