Aramco signed a non-binding agreement to take a 25% stake in the second phase of Sempra’s Port Arthur LNG export plant in Texas reports Bloomberg. The agreement would also include Aramco locking down five mn tons of LNG shipments from the plant each year for 20 years, according to the business information service. No further information on the financial details of the agreement were provided, but the two sides “said they expect to reach a binding agreement,” Bloomberg said.

All part of a LNG push: “This agreement is a major step in Aramco’s strategy to become a leading global LNG player,” said Nasir Al Naimi, Aramco’s upstream business president. Aramco has been pushing further into the LNG market as of late as it seeks to compete for a market share in the flourishing gas market. It made its entry into the business last year with a minority stake acquisition in Australia’s MidOcean Energy.

And the push is bearing fruit: Aramco also signed a non-binding agreement with US liquefied natural gas (LNG) development company NextDecade to supply 1.2 mn tons per annum of LNG for 20 years. Aramco had been in talks with NextDecade for a long-term gas purchase agreement from the Texan company’s Rio Grande facility. It has also been involved in negotiations with Houston-based Tellurian over a potential stake purchase in the US firm’s 27.6 mn metric ton per annum (mtpa) Driftwood LNG plant in Louisiana.

Tags: