SEATTLE (Oil Monster): Sempra Infrastructure and EQT Corporation have reached a definitive agreement towards supply of liquefied natural gas (LNG). The 20-year sales and purchase agreement (SPA) is linked to Port Arthur LNG Phase 2 development project in Texas. The agreement involves supply of 2 million tonnes per annum (Mtpa).
Under the terms of the agreement, EQT will purchase LNG on a free-on-board (FOB) basis. The purchase price will be indexed to the Henry Hub natural gas benchmark.
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The Port Arthur LNG Phase 2 development project is expected to reach a final investment decision (FID) during the current year. It has secured all major permits including FERC approval and export authorization from the U.S. Department of Energy (DoE).
Once fully operational, the Port Arthur LNG facility is projected to become the hub of U.S. energy exports. The initial phase of the project is currently under construction and is projected to become operational by 2027 or 2028. The second phase is expected to double the total liquefaction capacity of the facility.
Justin Bird, CEO, Sempra Infrastructure noted that the collaboration with EQT in advancing the project demonstrates the mutual commitment in helping the U.S. to ensure stable, long-term supply of LNG to global markets. The same sentiment was echoed by Toby Z. Rice, President and CEO, EQT.
