Sempra and Saudi Aramco Port Arthur LNG Agreement 

Sempra Energy and Saudi Aramco announced today a 20-year sale-and-purchase agreement for 5 million tonnes per annum of LNG offtake from Phase 1 of the Port Arthur LNG export project under development. The two companies are also finalizing an agreement where Saudi Aramco will take a 25% equity investment in Phase 1 of Port Arthur LNG. Financial terms of the deal were not provided by either company.

The proposed Port Arthur export project is in Jefferson County, Texas. Port Arthur LNG Phase 1 has plans to include two liquefaction trains, up to three LNG storage tanks and facilities that would enable the export of approximately 11 Mtpa of LNG on a long-term basis. In April of this year the U.S. Federal Energy Regulatory Commission gave authorization to Sempra Energy to site, construct and operate Port Arthur LNG. Sempra Energy currently plans for a final investment decision for Port Arthur LNG in Q1 2020.

Amin Nasser, Saudi Aramco's CEO & President, said, "The agreement with Sempra LNG is a major step forward in Saudi Aramco's long term strategy to become a leading global LNG player. With global demand for LNG expected to grow by around 4% per year, and likely to exceed 500 million metric tons a year by 2035, we see significant opportunities in this market and we will continue to pursue strategic partnerships which enable us to meet rising global demand for LNG."

Sempra believes Port Arthur LNG could be one of the largest LNG export projects in North America, with potential expansion capabilities up to eight liquefaction trains and approximately 45 Mtpa of capacity.

"At Sempra Energy, we are developing one of the largest LNG export infrastructure portfolios in North America, with an eye towards connecting millions of consumers to cleaner, more reliable energy sources," said Jeffrey W. Martin, chairman and CEO of Sempra Energy. "We are pleased to partner with affiliates of Saudi Aramco, the largest oil and gas company in the world, to advance the development of Sempra LNG's natural gas liquefaction facility in Texas and enable the export of American natural gas to global markets."