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Sempra (NYSE:SRE) said Wednesday it signed a non-binding heads of agreement to supply Saudi Aramco (ARMCO) with 5M metric tons/year of liquefied natural gas from the Port Arthur LNG Phase 2 expansion project for 20 years.
Sempra (SRE) said the HoA also contemplates Aramco’s (ARMCO) 25% participation in the project-level equity of Phase 2.
“As a potential strategic partner in the Port Arthur LNG Phase 2 project, Aramco is well placed to grow its gas portfolio with the aim of meeting the world’s growing need for lower-carbon sources of energy,” Aramco (ARMCO) Upstream President Nasir Al-Naimi said, adding the agreement is “a major step in its strategy to become a leading global LNG player.
According to previous reports, Aramco (ARMCO) has held talks with other U.S. LNG firms including Tellurian and NextDecade for long-term gas purchase agreements and stakes in their projects.
Sempra’s (SRE) proposed Phase 2 of Port Arthur LNG project is expected to add up to two trains capable of producing as much as 13M tons/year of the fuel.