Sempra to sell gas from Port Arthur LNG project to Germany’s RWE

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Sempra Energy (NYSE:SRE) said on Wednesday it entered into a heads of agreement with Germany’s RWE (OTCPK:RWEOY) for the purchase of 2.25M metric tons/year of liquefied natural gas.

Sempra (SRE) said the LNG will be supplied on a long-term, free-on-board basis from the Port Arthur LNG Phase 1 project currently under development in Texas.

Sempra (SRE) and RWE (OTCPK:RWEOY) also agreed to work toward a broad framework for the reduction, mitigation and reporting of greenhouse gas emissions associated with LNG deliveries from Port Arthur LNG, and consider the use of responsibly sourced natural gas as part of the project’s feed gas supply and renewable energy as part of the project power mix.

Phase 1 of Port Arthur LNG is fully permitted and expected to include two liquefaction trains and LNG storage tanks, and will be capable of producing as much as 13.5M tons/year of LNG.

Sempra (SRE) recently announced a heads of agreement to sell liquefied natural gas to Poland’s largest gas company from its portfolio of LNG projects in North America.