LNG and utility company Sempra reports earnings and plans for investments in projects and infrastructure
Sempra, the US utility company with power and natural gas services centred on California and Texas and LNG developments in the US and Mexico through the Sempra Infrastructure subsidiary, posted solid third-quarter earnings and said it expected to increase capital investment by up to 20 percent above the current $40 billion over the next five years.
Sempra signs preliminary supply deal with Poles and puts Port Arthur project in Texas back on fast track
Sempra Infrastructure, the owner of LNG assets on the US Gulf Coast and Mexico, has signed a preliminary supply accord with the Polish Oil and Gas Company for 3 million tonnes per annum of shipments from Louisiana and Texas.
A heads of agreement (HOA) was signed for a potential Polish deal with the cargoes delivered on a free-on-board bases from Sempra’s Cameron LNG plant at Hackberry in Louisiana, which is being expanded.
“The agreement underscores our commitment to help provide greater energy security to Poland and our global partners through long-term LNG sales,” said Dan Brouillette, President of Sempra Infrastructure, an affiliate of San Diego, California-based utility Sempra.
“Our relationship with PGNiG is core to this commitment, and we are excited to continue working closely with them to advance more reliable, secure and increasingly clean energy solutions,” added Brouillette.
Iwona Waksmundzka-Olejniczak, President of Polish Oil and Gas, said the accord paved the way for negotiations of detailed terms.
Commercial path
“LNG is already one of the cornerstones of our diversified strategy to enhance Polish energy security, as well as to strengthen the commercial potential of the PGNiG Group,” she added.
Sempra stated that the accord may result in the finalization of definitive 20-year LNG sale and purchase agreements (SPAs) for 2 MTPA from the Cameron LNG Phase 2 project expansion in Louisiana and 1 MTPA from the Port Arthur LNG project under development in Texas.
“The HOA also provides PGNiG the opportunity in 2022 to reallocate volumes from the Cameron LNG Phase 2 project to the Port Arthur LNG project,” explained Sempra.
Sempra's Cameron LNG Phase 2 expansion will be in the form of a single LNG Train with a production capacity of around 6.75 MTPA of LNG.
The plant will also be subject to a debottlenecking process to increase the efficiency and output of the existing three liquefaction Trains.
Sempra has now put the Port Arthur project in Texas back on the fast track route to development.
The proposed Port Arthur LNG plant has all its regulatory permits and will be constructed on a 3,000-acre site in Jefferson County in Texas and with an initial 13.5 MTPA of capacity.
