U.S.-based Sempra Energy said it signed a long-term sales agreement to deliver LNG to Germany energy company RWE. Image courtesy of Sempra Energy
Dec. 28 (UPI) -- Building on a bevy of similar announcements this week, Sempra Energy said Wednesday it signed a long-term sales agreement to deliver liquefied natural gas to Germany from its planned export facility in Texas.
Sempra has proposed a facility that would have two units -- called trains -- that cool natural gas enough so it turns to liquid, making it easier to export. The first phase of the project would have a design capacity of 13.5 million tons of LNG per year.
Under the terms of a sale and purchase agreement, German energy company RWE agreed to take about 15% of that volume per year over the next 15 years.
"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 the subsidiary, Sempra Infrastructure.
Germany just last week inaugurated its first-ever floating storage and regasification unit, Höegh Esperanza, marking the country's debut for the infrastructure necessary to turn LNG back into its gaseous form.
Germany before the outbreak of the war in Ukraine received almost all of its gas via pipeline from Russia and Norway. The regasification facility was built in less than a year and "shows what Germany can achieve within a few months if it has to," Vice Chancellor Robert Habeck said.
Sempra, meanwhile, joined a crowded field this week with several major U.S. energy companies announcing LNG sales agreements with European and Asian partners.
Japanese energy company Inpex on Tuesday announced the signing of a 20-year sale and purchase agreement with U.S.-based Venture Global LNG, while U.S.-based NextDecade Corp. said it revised an LNG agreement with Singapore's ENN LNG to allow for an increase in deliveries.
Russia was a main supplier of essential commodities from crude oil, natural gas and grains before its military forces invaded Ukraine in February. Western sanctions imposed since then have forced importers to look for alternative suppliers, from the United States to Qatar, to fill the void. Sempra said developments at Port Arthur depend on long-term commercial agreements, federal permitting and adequate financing before reaching a final investment decision.