With help from Saudi Aramco, Sempra building out US LNG facility

By Luke Geiver | May 28, 2019

Sempra Energy has been busy in the first half of 2019 establishing its global liquefied natural gas company. Roughly one month after receiving approval from the U.S. Department of Energy to export LNG, Sempra has signed a 20-year offtake agreement with Aramco Services Co., a subsidiary of the Saudi state-owned energy giant.

The deal includes 5 million tons per year of LNG. The product will be sent from Sempra’s Port Arthur LNG facility. The Federal Energy Regulatory Commission recently approved the build-out of the facility. Port Arthur is one of five facilities Sempra is currently planning or building in the U.S.

"At Sempra Energy, we are developing one of the largest LNG export infrastructure portfolios in North America, with an eye towards connecting millions of consumers to cleaner, more reliable energy sources," said Jeffrey Martin, chairman and CEO of Sempra Energy. "We are pleased to partner with affiliates of Saudi Aramco, the largest oil and gas company in the world, to advance the development of Sempra LNG's natural gas liquefaction facility in Texas and enable the export of American natural gas to global markets."

Aramco Services said it hopes to become a long-term player in LNG. “We see significant opportunities in this market and we will continue to pursue strategic partnerships which enable us to meet rising global demand for LNG,” said Amin Nasser, Saudi Aramco’s CEO and president.

As part of the long-term offtake deal in the Sempra facility, Aramco is also negotiating the finalization of 25 percent equity investment in the Port Arthur facility.