Saudi oil company Saudi Aramco has agreed with US energy company Sempra to purchase 5 million tons of liquefied natural gas (LNG) annually, the press service of Saudi Aramco reported.
Subsidiaries of Saudi Aramco and Sempra have signed a non-binding agreement to enter into an LNG purchase and sale agreement. Under the terms of the agreement, the Saudi company will receive 5 million tons of LNG annually for 20 years, reports TASS.
Deliveries are expected to begin from the second phase of the Port Arthur LNG project in Texas. The agreement also provides for Saudi Aramco to participate in the equity capital of the second phase of the project in the amount of 25 per cent.
The companies are currently negotiating a binding purchase and sale agreement as well as a definitive equity participation agreement on substantially equivalent terms. According to the statement from the Saudi Aramco press service, both agreements will be signed subject to a number of conditions.
The Port Arthur LNG project is one of the largest LNG export facilities in North America. It includes natural gas liquefaction facilities and an export terminal on the Gulf Coast. The second phase of the project is designed to produce roughly 13 million tons of LNG per year.
Saudi Aramco earlier signed a non-binding agreement to enter into 20-year LNG sales and purchase agreement with US Corporation NextDecade. Saudi Aramco is expected to receive 1.2 million tons of LNG per year from the fourth production train of the Rio Grande LNG project in Texas.
