State-owned Saudi Aramco and North America-based Sempra Energy announced today that their respective subsidiaries, Sempra LNG and Aramco Services Company, have signed a heads of agreement (HOA).
The HOA revolves around the negotiation and finalization of a definitive 20-year liquefied natural gas (LNG) sale-and-purchase agreement (SPA) for five million tonnes per annum (Mtpa) of LNG offtake from Phase 1 of the Port Arthur LNG export-project under development.
It also includes the negotiation and finalization of a 25 percent equity investment in Phase 1 of Port Arthur LNG.
"With global demand for LNG expected to grow by around 4 percent per year, 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,“ Amin Nasser, Saudi Aramco’s CEO and President, said.
The proposed Port Arthur LNG Phase 1 project is expected to include two liquefaction trains, up to three LNG storage tanks and associated facilities that should enable the export of approximately 11 Mtpa of LNG on a long-term basis.
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