Port Arthur plant would include two natural gas liquefaction trains, LNG storage tanks, and marine facilities
A new LNG export facility is under consideration by industry veterans Woodside Energy (USA) Inc. and Sempra Energy (NYSE: SRE), to be located in Port Arthur, Texas.
The companies announced last week that they have entered into a non-binding memorandum of understanding to “commence preliminary discussions and assessments” about a natural gas liquefaction facility at Port Arthur, about 90 miles east of Houston at a site previously permitted for a LNG regasification terminal.
The project could potentially include two natural gas liquefaction trains with a total export capability of 10 million metric tons per annum, LNG storage tanks, and marine facilities for LNG ship berthing and loading.
“Sempra Energy and Woodside bring together an extraordinary complementary set of experience and skills from two world-class organizations,” said E. Scott Chrisman, VP of commercial & development for Sempra LNG.
“We look forward to engaging Woodside in discussions regarding the proposed Port Arthur liquefaction project.”
In March, Sempra LNG’s affiliate, Port Arthur LNG, LLC, initiated the Federal Energy Regulatory Commission pre-filing review for the proposed natural gas liquefaction facility and filed its permit application with the US Department of Energy for authorization to export LNG produced from the proposed project to all current and future Free Trade Agreement countries.
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2014 revenues of $11 billion and 17,000 employees. Sempra LNG is lead sponsor of the Cameron liquefaction project in Louisiana, currently under construction.
Woodside is Australia’s most experienced LNG operator and largest independent oil and gas company, and has a track record of more than 30 years of experience in the development and safe and reliable operations in the LNG industry with the North West Shelf and Pluto projects in Australia.
Any decision by WUSA to proceed with a binding arrangement, including the establishment of a joint venture or partnership with Sempra LNG in relation to the project, remains subject to further due diligence and necessary internal and external approvals.