Sempra Infrastructure, a subsidiary of Sempra announced it has entered into a heads of agreement (HOA) with Williams for the offtake of liquefied natural gas (LNG) and development of associated natural gas pipeline projects to further connect abundant U.S. natural gas supplies in the Gulf Coast region to markets around the world.
Williams is based in Tulsa, Oklahoma.
The HOA contemplates negotiation and finalization of two 20-year long-term sale and purchase agreements for approximately 3 million tonnes per annum (Mtpa) of LNG in the aggregate from the Port Arthur LNG project under development in Jefferson County, Texas, and the Cameron LNG Phase 2 project under development in Hackberry, Louisiana. The HOA also contemplates the negotiation of a separate natural gas sales agreement for approximately 0.5 billion cubic feet per day (Bcfd) to be delivered in the Gillis, Louisiana area, as feed gas supply for the referenced LNG projects.
In addition, Sempra Infrastructure and Williams anticipate forming a strategic joint venture to own, expand and operate the existing 2.35 Bcfd Cameron Interstate Pipeline that is expected to deliver natural gas to the Cameron LNG Phase 2 project under development, as well as the proposed Port Arthur Pipeline Louisiana Connector that is expected to deliver natural gas to the proposed Port Arthur LNG facility.
(Source: Sempra – Image: Cameron LNG terminal in Hackberry – Image: TotalEnergies)