Riyadh – Mubasher: Subsidiaries of Saudi Arabian Oil Company (Aramco) and Sempra, a North American energy infrastructure company, have implemented a non-binding heads of agreement (HoA).

The HoA covers a 20-year sale and purchase agreement (SPA) for liquefied natural gas (LNG) offtake of five million tonnes per annum (MTPA) from the Port Arthur LNG Phase 2 expansion project, according to a press release.

The agreement also includes Aramco's intention to acquire a 25% stake in the equity of Phase 2 of the project.

The parties anticipate finalising a binding LNG sale and purchase agreement (SPA) and definitive equity agreements that mirror the terms outlined in the HoA.

Both the SPA and equity agreements are conditional upon meeting certain requirements.

Nasir K. Al-Naimi, Upstream President at Aramco, said: "As a potential strategic partner in the Port Arthur LNG Phase 2 project, Aramco is well placed to grow its gas portfolio with the aim of meeting the world's growing need for lower-carbon sources of energy.”

Jeffrey W. Martin, Chairman and CEO of Sempra, stated: "The planned expansion of Port Arthur LNG would help facilitate the broad distribution of US natural gas across global energy markets.”

“By expanding the global reach of the Port Arthur LNG facility, we have the opportunity to improve energy security, while providing a lower-carbon alternative to coal for electricity production,” Martin added.

Port Arthur LNG, an export terminal in Southeast Texas, is constructing Phase 1 with two trains and two storage tanks. Phase 2 will add up to two more trains, increasing capacity to 13 MTPA.

As part of Sempra Infrastructure's Port Arthur Energy Hub, the facility could expand to eight trains, enhancing global energy security.

Earlier this week, Aramco has awarded Abdullah Fahad Al-Khaledi for General Contracting (AFAC) a contract for a carbon capture and sequestration (CCS) project.