Sempra Infrastructure, a unit of energy infrastructure company Sempra Energy (SRE), announced Tuesday that it has entered into a long-term sale and purchase agreement or SPA with Engie SA (ENGQF.PK, ENGIY.PK), a French energy provider.
The deal is for the supply of U.S. liquefied natural gas or LNG from Phase 1 of its proposed Port Arthur LNG project under development in Jefferson County, Texas.
Under the SPA, ENGIE has agreed to buy around 0.875 million tonnes per annum or Mtpa of LNG for 15 years. The LNG will be delivered on a free-on-board basis, and sourced from natural gas producers whose gas has been certified by an independent third party in accordance with environmental, social and governance performance criteria.
The companies will also explore ways to lower the carbon intensity of LNG produced from the Port Arthur Phase 1 LNG project through GHG emission reduction, mitigation strategies and a continuous improvement approach.
Sempra Infrastructure recently announced it had finalized an engineering, procurement and construction contract with Bechtel Energy for the proposed Port Arthur LNG Phase 1.
The company also has entered into long-term agreements with ConocoPhillips and INEOS for the sale and purchase of around 5.0 Mtpa and 1.4 Mtpa of LNG, respectively.
The Port Arthur LNG Phase 1 project is permitted and expected to include two natural gas liquefaction trains and LNG storage tanks and associated facilities. These are capable of producing, under optimal conditions, up to approximately 13.5 Mtpa of LNG.
A similarly sized Port Arthur LNG Phase 2 project is also under active marketing and development.