Sempra Energy and Woodside to develop Port Arthur project in US

Subsidiaries of Sempra Energy and Woodside Petroleum have signed a memorandum of understanding (MoU) with Korea Gas (Kogas) to take up the development of the proposed Port Arthur LNG liquefaction project in Texas, US.

The MoU signed by Sempra LNG & Midstream and Woodside Energy (USA) outlines plans for the parties to work towards joint collaboration regarding key aspects of the development. This includes engineering and construction works, operations and maintenance activities, feed gas sourcing and offtake of liquefied natural gas (LNG).

The cooperation framework will also evaluate Kogas as a potential purchaser and equity participant in the project.

Sempra LNG & Midstream president Octávio Simões said: “Kogas’ expertise and knowledge of the LNG market will complement Sempra’s and Woodside’s extensive natural gas infrastructure development and combined marketing and operational experience to continue advancing the Port Arthur LNG project.”

Both subsidiary companies initially agreed to develop the Port Arthur LNG project in February last year on a cost-sharing basis, involving works related to the development, technical design, permitting and marketing of the proposed liquefaction project. 

The project will include LNG storage tanks, marine berths and other ancillary facilities in addition to two natural gas liquefaction trains.

However, the development hinges on completing required commercial agreements, acquiring all necessary permits and approvals and securing financing commitments, as well as satisfying other conditions before a final investment decision can be made.