Sempra Infrastructure signed a 20-year sale and purchase agreement with Japan’s largest utility, the companies announced July 31.
Jera agreed to take 1.5 million tonnes per annum (mtpa) from Sempra’s Port Arthur LNG Phase 2 project in Southeast Texas. The project, designed to produce about 13 mtpa, is scheduled to begin commercial operation in the next two to three years, Sempra said in the announcement.
Sempra Infrastructure, a subsidiary of Sempra (SRE), continues to line up customers and has not reached a final investment decision for the project.
“We remain focused on advancing our Port Arthur LNG Phase 2 development project to a final investment decision and strengthening the role of the United States as an energy provider of choice for LNG buyers worldwide,” said Justin Bird, Sempra Infrastructure CEO.
The deal completes an announced agreement in June, when Sempra joined three other companies at the U.S. Department of the Interior in Washington, D.C., to trumpet four deals Jera had made for a total of 5.5 mtpa from U.S. suppliers.
Jera said it would continue to diversify its supply chain as Japanese energy demands continue to increase. Analysts also noted a political motivation for the deals as Japan seeks to decrease concerns of the Trump administration regarding trade deficits.