Port Arthur LNG project : Sempra to supply natural gas to RWE

Sempra Infrastructure has signed a sale and purchase agreement with RWE Supply & Trading for the supply of liquefied natural gas (LNG) from the Port Arthur LNG project phase 1, which is under development in Jefferson County, Texas.

RWE Supply & Trading is a subsidiary of RWE, while Sempra Infrastructure is an arm of US-based Sempra.

Under the agreement, Sempra Infrastructure will provide the German multinational energy company with around 2.25 million tonnes per annum (Mtpa) of LNG on free-on-board from the proposed phase 1 of the liquefaction project for a term of 15 years.

In addition, the agreement aims to minimize the carbon intensity of LNG produced from the Port Arthur LNG project phase 1 through greenhouse gases emission reduction, mitigation approaches, and a constant improvement method.

Justin Bird — Sempra Infrastructure CEO said: “We could not be more excited to finalize our agreement with RWE as we continue supporting the energy security and environmental goals of our European customers.

“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.”

Sempra to supply natural gas to RWE from Port Arthur LNG project phase 1. Photo courtesy of Ben Friedl/Wikimedia Commons.

The Port Arthur LNG project phase 1 is anticipated to contain a couple of natural gas liquefaction trains and LNG storage tanks and related facilities to produce 13.5Mtpa of LNG under optimal conditions.

The Port Arthur LNG phase 2 project is also of similar magnitude and is under active marketing and development.

With first cargo deliveries expected in 2027, the company is expected to make a final investment decision for the Port Arthur LNG project phase 1 in Q1 2023.

RWE is gradually eliminating nuclear energy and coal to achieve its net zero target by 2040.

Sempra also agreed to supply approximately 7.3Mtpa of LNG to ConocoPhillips, INEOS, and ENGIE from the proposed Port Arthur LNG project phase 1.

Recently, Sempra Infrastructure secured permission from the US Department of Energy (DOE) to re-export US-sourced LNG from Mexico to non-Free Trade Agreement (FTA) countries through its Energía Costa Azul (ECA) LNG and Vista Pacifico LNG plants.