Under the 20-year SPA, Sempra Infrastructure will supply 1.5 million tonnes per annum (mtpa) of LNG from the Port Arthur expansion project on a free-on-board basis.
Sempra Infrastructure said in a statement that this agreement marks a “major” step forward from the non-binding heads of agreement signed in June.
“This agreement establishes a long-term relationship with Jera and confirms Sempra Infrastructure’s commitment to customers in Japan and the greater Asian market,” said Justin Bird, chief executive officer of Sempra Infrastructure.
“We remain focused on advancing our Port Arthur LNG Phase 2 development project to a final investment decision and strengthening the role of the United States as an energy provider of choice for LNG buyers worldwide,” he said.
Port Arthur LNG
In March 2023, Sempra Infrastructure took a final investment decision for the first phase of its Port Arthur LNG export project worth about $13 billion.
Bechtel won the $10.5 billion EPC contract, which includes building two trains with a total capacity of about 13 mtpa and two storage tanks with a capacity of 160,000 cbm.
The expected commercial operation dates for train 1 and train 2 are 2027 and 2028, respectively.
Moreover, Sempra Infrastructure received non-FTA approval in May from the US Department of Energy for the second phase of its Port Arthur LNG export project.
The company also confirmed that it still expects to make a final investment decision on the second phase of its Port Arthur LNG export project in 2025.
The development of the proposed second phase would increase the total liquefaction capacity of the facility to about 26 mtpa.
Sempra Infrastructure and a subsidiary of Aramco signed a non-binding heads of agreement contemplating both a long-term LNG offtake agreement and an equity investment in the Port Arthur LNG Phase 2 project in June last year.
In addition, Sempra Infrastructure announced last year that Bechtel had been selected for a fixed-price EPC contract for the project.
Besides the second phase, future phases of the Port Arthur LNG project are also in the early development stage.
