DHAHRAN, Saudi Arabia and
SAN DIEGO, Jan. 6, 2020 /PRNewswire/ -- Sempra Energy
(NYSE:SRE) and Saudi Aramco today announced their respective
subsidiaries, Sempra LNG and Aramco Services Company, have signed
an Interim Project Participation Agreement (IPPA) for the Port
Arthur LNG export project under development in Jefferson County, Texas.
The IPPA represents another milestone for both companies after
having signed a heads of agreement in May last year for the
purchase of 5 million tonnes per annum (Mtpa) of liquefied natural
gas (LNG) and a 25% equity investment in the Port Arthur LNG
project.
"Today's announcement is a reflection of the growing alignment
between our companies' interest in the overall success of the Port
Arthur LNG project," said Jeffrey W.
Martin, chairman and CEO of Sempra Energy. "We have a
tremendous amount of respect for Saudi Aramco and its leadership
team and we are pleased we can support their success in the global
natural gas markets."
Saudi Aramco's President and CEO Amin H.
Nasser said, "The global demand growth for LNG is expected
to continue in the coming years, and we see significant
opportunities in this market. This agreement with Sempra Energy is
another step forward for Saudi Aramco's long-term gas strategy, and
towards becoming the global leading integrated energy and chemicals
company."
The initial phase of the Port Arthur LNG project is fully
permitted and it is expected to include two liquefaction trains, up
to three LNG storage tanks and associated facilities to enable the
export of approximately 11 Mtpa of LNG on a long-term basis.
Earlier this year, Sempra LNG initiated the Federal Energy
Regulatory Commission pre-filing review for a subsequent potential
expansion of the proposed project that would add two additional
liquefaction trains for a total export capacity of approximately 22
Mtpa of LNG.
"Port Arthur LNG is expected to play a critical role in helping
shape the future of global energy trade," added Martin. "This
multibillion-dollar initiative is among the largest LNG projects in
development anywhere in the world and is expected to deliver a
cleaner energy supply to foreign markets, while creating important,
high-skilled jobs right here at home."
The definitive agreements in the Port Arthur LNG export project
remain subject to finalization and corporate approvals by each
party in its sole discretion before they are executed. Each party's
ultimate participation in the Port Arthur LNG export project also
remains subject to the execution of related agreements and the
fulfillment or waiver of certain conditions precedent contemplated
by these agreements, including the condition that each party shall
have taken a final investment decision (FID) with respect to its
investment in the project at its sole discretion. The IPPA sets
forth certain mechanisms for the parties to work towards these and
other pre-FID activities.
Port Arthur LNG is one of Sempra LNG's five strategically
located LNG development opportunities in North America and is a component of Sempra
LNG's goal of developing the LNG infrastructure needed to export 45
Mtpa of clean natural gas to the global LNG market.
Development of Sempra Energy's LNG export projects is contingent
upon obtaining binding customer commitments, completing the
required commercial agreements, securing all necessary permits,
obtaining financing and reaching final investment decisions, among
other factors.
About Sempra LNG
Sempra LNG develops and builds natural gas liquefaction
facilities and is pursuing the development of five strategically
located LNG projects in North America with a goal of
delivering 45 Mtpa of clean natural gas to the largest world
markets, which would make Sempra Energy one of North
America's largest developers of LNG-export facilities.
About Sempra Energy
Sempra Energy's mission is to be North
America's premier energy infrastructure company. With more
than $60 billion in total assets
reported in 2018, the San
Diego-based company is the utility holding company with the
largest U.S. customer base. The Sempra Energy companies' more than
20,000 employees deliver energy with purpose to approximately 40
million consumers worldwide. The company is focused on the most
attractive markets in North
America, including California, Texas, Mexico
and the LNG export market. Sempra Energy has been consistently
recognized for its leadership in diversity and inclusion, and
sustainability, and is a member of the S&P 500 Utilities Index
and the Dow Jones Utility Index.
About Aramco Services Company
Aramco Services Company (ASC) is the U.S.-based subsidiary of
Saudi Aramco, a world leader in integrated energy and chemicals,
and has had a presence in the U.S. for more than 60 years. ASC is a
contributor to the U.S. energy sector through research and
development, venture fund activities, asset ownership, as well as
technology and digital transformation. The company is
headquartered in Houston, and
maintains offices in New York,
Washington D.C., Boston, and Detroit. ASC is committed to being a positive
contributor in the communities where its employees live and work,
and to making a difference through outreach that benefits the arts,
geosciences, education and the environment. americas.aramco.com
About Saudi Aramco
Saudi Aramco is a global integrated energy and chemicals
company. We are driven by the core belief that energy is
opportunity. From producing approximately one in every eight
barrels of the world's oil supply to developing new energy
technologies, our global team is dedicated to creating impact in
all that we do. We focus on making our resources more
dependable, more sustainable and more useful. This helps promote
stability and long-term growth around the world.
Saudi Aramco Forward-Looking Information
This release contains forward-looking statements. All
statements other than statements of historical fact included in
this release are forward-looking statements. Saudi Aramco believes
that the forward-looking statements are based upon reasonable
assumptions and expectations. However, you are cautioned that any
such forward-looking statements are not guarantees of the future
and that a number of risks and uncertainties could cause actual
events to differ materially from those anticipated in the
forward-looking statements.
Sempra Energy Forward-Looking Information
This press release contains statements that are not
historical fact and constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements can be identified by words such as
"believes," "expects," "anticipates," "plans," "estimates,"
"projects," "forecasts," "contemplates," "assumes," "depends,"
"should," "could," "would," "will," "confident," "may," "can,"
"potential," "possible," "proposed," "target," "pursue," "outlook,"
"maintain," or similar expressions or when we discuss our
guidance, strategy, plans, goals, vision, mission, opportunities,
projections, initiatives, objectives or intentions. Forward-looking
statements are not guarantees of performance. They involve risks,
uncertainties and assumptions. Future results may differ materially
from those expressed in the forward-looking statements.
Factors, among others, that could cause our actual results
and future actions to differ materially from those described in any
forward-looking statements include risks and uncertainties relating
to: actions and the timing of actions, including decisions,
investigations, new regulations and issuances of permits and other
authorizations by the U.S. Department of Energy, Federal Energy
Regulatory Commission, U.S. Environmental Protection Agency and
Pipeline and Hazardous Materials Safety Administration, states,
cities and counties, and other regulatory and governmental bodies
in the U.S. and other countries in which we operate; the success of
business development efforts and construction projects, including
risks in (i) obtaining or maintaining authorizations; (ii)
completing construction projects on schedule and budget; (iii)
obtaining the consent of partners; (iv) counterparties' financial
ability or otherwise to fulfill contractual commitments; and
(v) the ability to realize anticipated benefits from any of
these efforts once completed; the availability of natural gas and
liquefied natural gas, and natural gas pipeline and storage
capacity; equipment failures; changes in energy markets; volatility
in commodity prices; moves to reduce or eliminate reliance on
natural gas; weather conditions, natural disasters, accidents,
equipment failures, computer system outages, explosions, terrorist
attacks and other events that disrupt our operations, damage our
facilities and systems, cause the release of harmful materials, and
subject us to third-party liability for property damage or personal
injuries, fines and penalties, some of which may not be covered by
insurance (including costs in excess of applicable policy limits)
or may be disputed by insurers; risks posed by actions of third
parties who control the operations of our investments;
cybersecurity threats to storage and pipeline infrastructure and
the information and systems used to operate our businesses; changes
in capital markets, energy markets and economic conditions,
including the availability of credit; and volatility in foreign
currency exchange, interest and inflation rates and commodity
prices and our ability to effectively hedge the risk of such
volatility; changes in foreign and domestic trade policies and
laws, including border tariffs and revisions to or the replacement
of international trade agreements, such as the North American Free
Trade Agreement, that may increase our costs or impair our ability
to resolve trade disputes, and changes that make our exports less
competitive or otherwise restrict our ability to export; the impact
of federal or state tax reform and our ability to mitigate adverse
impacts; and other uncertainties, some of which may be difficult to
predict and are beyond our control.
These risks and uncertainties are further discussed in the
reports that Sempra Energy has filed with the U.S. Securities and
Exchange Commission (SEC). These reports are available through the
EDGAR system free-of-charge on the SEC's website, www.sec.gov, and
on the company's website at www.sempra.com. Investors should not
rely unduly on any forward-looking statements. These
forward-looking statements speak only as of the date hereof, and
the company undertakes no obligation to update or revise these
forecasts or projections or other forward-looking statements,
whether as a result of new information, future events or
otherwise.
Sempra LNG and Port Arthur LNG, LLC are not the same as the
California Utilities, San Diego Gas & Electric Company
(SDG&E) or Southern California Gas Company (SoCalGas), or Oncor
Electric Delivery Company LLC (Oncor) and are not regulated by the
California Public Utilities Commission.
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SOURCE Sempra Energy