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Sempra, Saudi Aramco reinforce Port Arthur LNG partnership, plan for expansion

Sempra Energy subsidiary Sempra LNG LLC and Saudi Arabian Oil Co. unit Aramco Services Co. Inc. strengthened their partnership in the development of the Port Arthur LNG export terminal in Jefferson County, Texas, with an interim project participation agreement.

In addition, Sempra LNG said it started a prefiling review with the Federal Energy Regulatory Commission for a proposed expansion of the project that would add two more liquefaction trains for a total LNG export capacity of about 22 million tonnes per annum, according to the release. The permitted first phase of the Port Arthur LNG project would include two liquefaction trains, up to three LNG storage tanks and associated facilities that would enable an export capacity of about 11 mtpa of LNG.

The participation of the companies in the Port Arthur LNG project is still subject to the execution of agreements and conditions, including final investment decisions, according to a Jan. 6 news release. Sempra LNG and Aramco Services in May 2019 entered into a nonbinding agreement for a 20-year LNG supply deal for the Sempra-led Port Arthur LNG export project and a 25% equity investment in the project's first phase.

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