Sempra, Aramco enter HoA for equity, offtake from Port Arthur LNG Phase 2

Sempra has signed a non-binding heads of agreement (HoA) with Saudi Aramco for equity and offtake from the 13.5-million tonne/year (tpy) Port Arthur LNG Phase 2 expansion project in Jefferson County, Tex.

The agreement paves the way for Sempra to supply 5 million tpy of LNG from the expansion project for 20 years. The HoA further contemplates Aramco’s 25% participation in the project-level equity of Phase 2.

The companies expect to execute a binding LNG supply agreement and a definitive equity agreement with terms substantially equivalent to those in the HoA, both subject to conditions, the companies said in a release June 26.

Port Arthur Trains 1 and 2 (Phase 1) are under construction and expected to be completed in 2027 and 2028, respectively. Phase 2 is an expansion of the site to include the addition of up to two trains capable of producing up to 13 million tpy.