Sempra Infrastructure talking LNG deal with RWE
Sempra Infrastructure said May 25 it had entered into a heads of agreement (HOA) with Germany’s RWE Supply & Trading for the sale and purchase of about 2.25mn mt/yr of LNG from the first phase of Sempra’s planned Port Arthur LNG project in Texas.
"Sempra Infrastructure’s LNG projects are uniquely positioned to help provide US LNG to support the energy security of America’s allies in Europe, while also accelerating the transition to a lower carbon future,” Sempra Infrastructure CEO Justin Bird said on the sidelines of the World Economic Forum in Davos, Switzerland. “We are excited about the opportunity to work with one of Germany’s top power producers to achieve these dual goals."
The agreement with RWE, Bird added, represents “significant progress” towards the development of the 13.5mn mt/yr Port Arthur project.
The HOA contemplates continued negotiations aimed at finalising a definitive 15-year sale and purchase agreement for LNG from Port Arthur. Additionally, Sempra and RWE have agreed to work towards a broad framework for the reduction, mitigation, and reporting of GHG emissions associated LNG from the planned project, including including addressing the use of responsibly sourced natural gas as part of the project's feed gas supply and renewable energy as part of the project’s power mix.
The HOA is a non-binding agreement, and the development of Port Arthur LNG remains subject to a number of uncertainties, including reaching definitive agreements, maintaining all necessary permits, finalising engineering and construction arrangements, closing financial considerations and reaching a final investment decision.