EQT Corp. has committed to buying two million metric tons per annum (MMtpa) for 20 years from Sempra’s planned Port Arthur LNG Phase II project in Jefferson County, Texas.
“EQT will purchase the LNG on a free-on-board basis at a price indexed to Henry Hub”, EQT and Sempra Infrastructure, part of San Diego, California-based energy infrastructure company Sempra, said in a joint statement.
Sempra Infrastructure chief executive Justin Bird said, “This development project can help fortify America’s position as a leading energy exporter, which is a shared goal of EQT and Sempra Infrastructure”.
Earlier this month ConocoPhillips signed an agreement to buy four MMtpa over 20 years on a free-on-board basis from Port Arthur LNG Phase II. ConocoPhillips had already signed up for five MMtpa over 20 years from the under-construction first phase, from which it has also agreed to acquire a 30 percent equity stake.
“With continued momentum in the project’s development, Sempra Infrastructure continues to target making a final investment decision on the Port Arthur LNG Phase II project in 2025”, the statement said.
“All major permits for the Port Arthur LNG Phase II development project have been secured”, it added.
In July Sempra secured a 20-year agreement to supply 1.5 MMtpa from phase II to Japan’s JERA Co. Inc. on a free-on-board basis.
In June Sempra and Saudi Arabian Oil Co. (Aramco) progressed a heads-of-agreement document on phase II into a memorandum of understanding (MOU) under which the state-owned oil giant plans to buy five MMtpa for 20 years. The MOU also provides for Aramco’s potential acquisition of a 25 percent interest.
In May the Department of Energy (DOE) granted phase II a permit to export to countries without a free trade agreement (FTA) with the U.S., marking the resumption of federal permitting for LNG export to non-FTA nations following a pause by the previous administration.
Phase II, which will consist of trains II and IV, is now authorized to export the equivalent of 698 billion cubic feet a year of natural gas, or about 13.5 MMtpa of LNG according to Sempra, to FTA and non-FTA countries on a non-additive basis until 2050. Sempra received the FTA portion of the permit July 2020.
Phase I, which consists of trains I and II, had received a permit to export the same volume to FTA and non-FTA countries until 2050. Sempra expects to start up trains I and II in 2027 and 2028 respectively.
Bechtel Corp. is the engineering, procurement and construction contractor for both phases.
Further expansions are in the “early development stage”, according to Sempra Infrastructure.
To contact the author, email jov.onsat@rigzone.com
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