Sempra, Saudi Aramco sign agreement to supply LNG from Port Arthur project
Date
6/27/2024 4:55:41 AM
(MENAFN) Sempra Energy, an American company, and Saudi Aramco have entered into a non-binding agreement to supply five million tons of liquefied natural gas (LNG) annually for 20 years from the second phase of the Port Arthur LNG expansion project. Announced on Wednesday, this agreement also outlines the potential for Saudi Aramco to acquire a 25 percent stake in the investment for the project's second phase.
The collaboration marks a significant step towards enhancing Saudi Aramco's presence in the LNG market. Earlier reports in March had indicated ongoing negotiations between Aramco and Sempra energy regarding potential investment in the Port Arthur LNG project located in Texas, USA.
In mid-June, Aramco also finalized a non-binding agreement with Next Decade, another American LNG supplier, to purchase approximately 1.2 million tons of LNG annually over a 20-year period. These agreements underscore Aramco's strategic efforts to expand its footprint in global energy markets.
According to Aramco's statement, subsidiaries of both companies have signed an initial non-binding agreement for a 20-year LNG purchase and sale arrangement from the fourth unit of the Rio Grande LNG facility at the Port of Brownsville, Texas. This initiative aligns with Aramco's broader strategy to capitalize on opportunities in the growing LNG sector, which is projected to expand by 50 percent globally by 2030, driven particularly by significant growth in the United States where LNG capacity is expected to nearly double over the next four years.
The recent agreements highlight Saudi Aramco's proactive approach to securing long-term LNG supply agreements and strengthening its position in key markets amid evolving global energy dynamics and increasing demand for cleaner energy sources.
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