U.S. energy companies Sempra and Williams signed a framework agreement (HOA) to deliver natural gas (NG) through the development of gas pipelines.
The agreement contemplates the signing of two long-term 20-year purchase and sale agreements for approximately three million tons per year of natural gas from the Port Arthur LNG and Cameron LNG Phase Two projects, located in Jefferson, Texas and Hackberry, Louisiana, respectively, which are currently under construction.
The agreement also contemplates the sale of natural gas for approximately 500 million cubic feet per day for both projects to be delivered to the Gillis, Louisiana area.
"We are excited to continue to advance our U.S. Gulf Coast LNG projects and associated pipelines as we work to help meet the world's growing demand for cleaner, more reliable sources of energy," Justin Bird, Sempra Infrastructure's chief executive officer, said in a statement. "We look forward to advancing our relationship with Williams, a like-minded company that shares our commitment to building a future with abundant, affordable energy and energy security."
In addition, Sempra Infrastructure and Williams plan to create a strategic joint venture to expand and operate the Cameron Interstate Pipeline, which is expected to supply natural gas to the developing Cameron LNG Phase 2, as well as the proposed Port Arthur Connector Louisiana pipeline that is anticipated to supply natural gas to the proposed Port Arthur LNG terminal.
"Williams is pleased to pursue this strategic transaction with Sempra Infrastructure," said Alan Armstrong, president and chief executive officer of Williams, in the same release. "We see it as an opportunity to combine our capabilities across the natural gas value chain and increase the supply of low-carbon, affordable and reliable natural gas from its origin to the growing international market."