GLNG: Sempra signs offtake agreement with Port Arthur LNG

Sempra has announced an offtake agreement with Engie for liquefied natural gas (LNG) from Sempra’s proposed Port Arthur LNG facility.

For 15 years, Engie will receive some 0.875mn tonnes per year (tpy) of LNG from the Port Arthur LNG Phase I project, on the Gulf of Mexico. The LNG project is owned by Sempra Infrastructure, a subsidiary of Sempra.

The LNG will be delivered on a free-on-board (FOB) basis, and sourced from natural gas producers whose gas has been certified by an independent third party in accordance with environmental, social and governance performance (ESG) criteria, said San Diego-based Sempra.

The agreement also provides a framework to explore ways to lower the carbon intensity of LNG produced from the Port Arthur Phase 1 LNG project through greenhouse gas (GHG) emission reduction, mitigation strategies and a continuous improvement approach, said the company.

"Engie is a leader in Europe's energy transition and a great addition to our Port Arthur LNG customer portfolio," said the CEO of Sempra Infrastructure, Justin Bird. "We are excited to work with Engie to deliver reliable energy resources like LNG and contribute to the security of natural gas supply to their clients while supporting both companies' ESG commitments."

Sempra Infrastructure recently announced it had finalised an engineering, procurement and construction (EPC) contract with Bechtel Energy for the proposed Port Arthur LNG Phase 1.