Saudi Aramco, US Sempra on purchasing 5mn tonnes of LNG per year

Saudi oil company Saudi Aramco has agreed with US energy company Sempra to purchase 5 million tonnes 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, reports BSS/TASS.

Under the terms of the agreement, the Saudi company will receive 5 million tonnes of LNG annually for 20 years.

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 percent.

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 tonnes of LNG per year.

Saudi Aramco earlier signed a non-binding agreement to enter into a 20-year LNG sales and purchase agreement with US corporation NextDecade.

Saudi Aramco is expected to receive 1.2 million tonnes of LNG per year from the fourth production train of the Rio Grande LNG project in Texas.