Saudi Arabia-based national petroleum and natural gas company Saudi Aramco signed a deal with San Diego-based company Sempra Energy in a multi-billion natural gas investment.
In the move to become one of the world’s key player in the international gas market, Aramco is also injecting cash to the Port Arthur development in exchange for a 25% stake. This is part of the deal yet to be implemented when agreements are between the two companies are final.
In an article published by AP News, the deal will last for about 20 years, with Aramco buying 5 million tons of natural gas from the facility.
According to Sempra CEO Jeff Martin, the company is ‘pleased’ to partner with the world’s largest oil and gas company. He mentioned that this partnership will help Sempra advance in the development of the natural gas liquefaction facility in Texas to eventually export American natural gas to the global market.
Meanwhile, Aramco is taking this opportunity to meet the rising demand for LNG in the world and to seek significant opportunities in the market.
Aramco CEO Amin Nasser said, “We will continue to pursue strategic partnerships which enable us to meet rising global demand for LNG.”
For years, Aramco has been exploring the natural gas market to double its total gas production for the next 10 years. The company has explored North America, Russia and Africa for partnerships.
Right now, Sempra and Aramco are still finalizing the scope of the agreement and is looking at the possibilities of the Saudi Arabia company getting 5 million tons of natural gas supply from the American company.
Once the deal is concluded, Sempra will have locked in buyers for 7 million tons of Port Arthur’s 111 million tons per year capacity.
