RWE Supply & Trading and Sempra Infrastructure have signed a sale and purchase agreement for the supply of approximately 2.25 million tonnes per year of Liquefied Natural Gas (LNG). This corresponds to approximately 30 cargoes of LNG and some 3 billion cubic meters (BCM) per year of natural gas respectively. LNG will be supplied from the planned Port Arthur LNG Terminal in Texas, U.S., which is expected to start operations during 2027. Deliveries can be shipped by RWE to any location in the world – as an example to the LNG import facilities in Germany. The agreement also provides a framework to monitor, report and verify greenhouse gas emissions (GHG) from the well head to LNG loading to help ensure low emission LNG cargoes produced from the Port Arthur LNG Terminal that can support the reduction of GHG emissions across the LNG value chain.
Andree Stracke, CEO of RWE Supply & Trading: “Our partnership with Sempra Infrastructure, one of the leading companies for LNG infrastructure in the U.S., is another important step to diversify Germany’s gas supply and thus contributes to enhancing security of supply in Europe on a long-term basis. Thanks to the LNG supply contract with Sempra Infrastructure we can also enlarge our international LNG portfolio.”
“We could not be more excited to finalize our agreement with RWE as we continue supporting the energy security and environmental goals of our European customers,” said Justin Bird, CEO of Sempra Infrastructure. “Because of its scale, location and permitting status, Port Arthur LNG is benefitting from a lot of commercial momentum with nearly all of the projected off-take capacity for Phase 1 now under long-term agreements with some of the leading global energy companies. Today’s announcement moves us one step further along in the process of making Port Arthur LNG a reality.”
Sempra Infrastructure is a US-based infrastructure company that develops, builds and operates LNG facilities and LNG development projects on the Gulf Coast of North America and Pacific Coast of Mexico. The Port Arthur LNG Phase 1 project is a fully-permitted development project in Jefferson county, Texas, aiming at increasing the capacities for LNG production in the US. The terminal operation start date is expected during 2027. As an integrated part of their cooperation, RWE and Sempra Infrastructure are also aiming at developing a framework for
lowering greenhouse gas (GHG) emissions across the LNG value chain through the use of new technologies and the improvement of key processes. This should provide the basis for future low-carbon gas supplies.
In addition to sourcing LNG supplies, RWE is also involved in setting up LNG import infrastructure in Germany. On behalf of the German government, RWE has chartered two so-called ‘Floating Storage and Regasification Units’ (FSRU) and will operate one of them in Brunsbüttel, near Hamburg from January 2023. The first LNG deliveries for the special ship have already been contracted.
Furthermore, German LNG GmbH plans to build a land-based LNG regasification terminal in Brunsbüttel for the import and distribution of LNG. The terminal will have an annual regasification capacity of 8 BCM and provide a possibility to import gas directly to the German market from regions which cannot be reached by gas pipelines. According to current plans, the terminal is scheduled to start operations towards the end of 2026. Through the supply contract with Sempra Infrastructure, RWE has secured sufficient LNG volumes to make full use of its booked regasification capacities at Brunsbüttel.
As a shareholder, RWE is supporting its green conversion at a later stage to allow for importing green molecules. In addition, RWE wants to realize another project in the immediate vicinity: a terminal for the import of green ammonia. Green ammonia as a liquefied hydrogen derivative can make an important contribution to supplying Germany with green hydrogen. From as early as 2026, around 300,000 tonnes of green ammonia per year could arrive in Germany via the terminal and be distributed to customers.
Note to editors:
2.25 million tonnes per annum of liquefied natural gas (LNG) corresponds to around 3 billion cubic meters (BCM) per annum of natural gas and to approximately 30 terawatt hours (TWh) per annum.