France’s Engie signs up for Port Arthur LNG supply

French utility Engie has signed a long-term deal with Sempra Infrastructure, a subsidiary of New York-listed Sempra, for the supply of liquefied natural gas (LNG) from Phase 1 of Sempra’s proposed Port Arthur LNG project under development in Jefferson County, Texas.

The deal will see Engie buy about 0.87m tonnes of LNG annually (mpta) for 15 years, delivered on a free-on-board basis and sourced from natural gas producers whose gas has been certified by an independent third party in accordance with environmental, social and governance (ESG) performance criteria, Sempra said, adding that the deal also provides a framework to explore ways to lower the carbon intensity of LNG produced from the Port Arthur Phase 1 LNG project through GHG emission reduction, mitigation strategies and a continuous improvement approach.

The Port Arthur LNG Phase 1 project is expected to include two natural gas liquefaction trains and LNG storage tanks and associated facilities capable of producing up to around 13.5 mtpa of LNG. A similarly sized Port Arthur LNG Phase 2 project is also under active marketing and development.

The development is contingent upon completing the required commercial agreements, securing all necessary permits, obtaining financing, and reaching a final investment decision (FID), among other factors. The FID for Phase 1 of the project is expected in the first quarter of 2023.

The company recently finalised an engineering, procurement and construction contract with Bechtel Energy for Phase 1 and entered into long-term agreements with ConocoPhillips and Ineos for the sale and purchase of approximately 5 mtpa and 1.4 mtpa of LNG, respectively.