The IPPA follows a heads of agreement (HoA) that was signed in May last year for the purchase of 5 million tpy of LNG and a 25% equity investment in the Port Arthur LNG project.

Jeffrey W. Martin, Chairman and CEO of Sempra Energy, said: “Today’s announcement is a reflection of the growing alignment between our companies' interest in the overall success of the Port Arthur LNG project.

“We have a tremendous amount of respect for Saudi Aramco and its leadership team and we are pleased we can support their success in the global natural gas markets.”

Federal officials authorized the Port Arthur LNG export terminal to produce 13.5 million metric tons of the supercooled power plant fuel in an April 2019 permit decision.

The first phase of the project is expected to include two liquefaction trains and up to three LNG storage tanks that will enable the export of approximately 11 million metric tons of LNG per year.

Citing expected global demand growth for LNG in the coming years, Aramco CEO Amin Nasser said, “We see significant opportunities in this market. This agreement with Sempra Energy is another step forward for Saudi Aramco’s long-term gas strategy, and toward becoming the global leading integrated energy and chemicals company.”

The initial phase of the project is fully permitted and is expected to include two liquefaction trains, up to three LNG storage.

Maritime Business World