SAN DIEGO – Sempra LNG has officially announced it has executed a non-binding Memorandum of Understanding (MOU) with an affiliate of Woodside Petroleum Ltd. Woodside to commence discussions and assessments for the potential development of Sempra LNG’s proposed Port Arthur liquefaction project in Port Arthur, Texas.
“Sempra Energy and Woodside bring together an extraordinary complimentary set of experience and skills from two world-class organizations,” said E. Scott Chrisman, vice president of commercial & development for Sempra LNG. “We look forward to engaging Woodside in discussions regarding the proposed Port Arthur liquefaction project.”
Woodside 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. Sempra LNG, as lead sponsor of the Cameron liquefaction project in Louisiana and currently in construction, has demonstrated its ability to develop high-value, low-cost liquefied natural gas (LNG) projects in North America.
The non-binding MOU is the initial step for Sempra LNG and Woodside to explore this opportunity and undertake due diligence for the potential development of the Port Arthur liquefaction project. Any decision to proceed with a binding agreement between Woodside and Sempra LNG in relation to the potential development of the project, including the establishment of any joint venture or partnership between Sempra LNG and Woodside, is contingent upon completing project assessments and achieving other necessary internal and external approvals for each party.
The proposed Port Arthur liquefaction project would be located at a site previously permitted for an LNG regasification terminal and would be designed to include two natural gas liquefaction trains with a total export capability of approximately 10 million metric tons per annum, or 1.4 billion cubic feet per day, as well as LNG storage tanks and marine facilities for LNG ship berthing and loading.
In March 2015, 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 U.S. Department of Energy for authorization to export LNG produced from the proposed project to all current and future Free Trade Agreement countries.
Any development of the project remains contingent upon completing required commercial agreements; acquiring all necessary permits and approvals; securing financing commitments and potential tax incentives; achieving other customary conditions; and making a final investment decision to proceed.