Sempra Signs Deal With French Utility for Gas From Texas LNG Plant

California-based Sempra Infrastructure's computer rendition of the Port Arthur LNG facility in Southeast Texas. (courtesy of Sempra Infrastructure)

Sempra Infrastructure announced Tuesday that it has signed a long-term deal with French utility Engie for the supply of liquefied natural gas from the Port Arthur LNG facility in southeast Texas.

Engie agreed to buy .875 million tons per annum (Mtpa) of LNG from phase 1 of the project.

“Engie is a leader in Europe’s energy transition and a great addition to our Port Arthur LNG customer portfolio,” Justin Bird, CEO at Sempra Infrastructure, said in a news release.

The companies also agreed to seek ways to reduce the carbon intensity of LNG produced from phase 1 of the LNG project underway in Jefferson County.

“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 (Environmental, Social, and Governance) commitments,” Bird added.

The contract is the third largest deal that California-based Sempra has signed in three weeks. Last month, Houston-based ConocoPhillips executed a 20-year agreement to buy more than 5 Mtpa of LNG from the Port Arthur LNG plant.

That contract was followed by a sales and purchase agreement with Britain’s Ineos Energy to purchase approximately 1.4 Mtpa over a 20-year term. The companies also signed a non-binding agreement for an additional.2 Mtpa from phase 2 of the Port Arthur project, Sempra said in a release.

A similarly-sized project, Port Arthur Phase 2, is competitively positioned and under active marketing.

Sempra must complete the required commercial agreements, secure all necessary permits, obtain financing, and reach a final investment decision before the project can be finalized.

The company expects to make a final investment decision on phase 1 by early 2023.