Saudi Arabian Oil Co., also known as Aramco, under a 20 year agreement, will begin buying 5 million tons of liquid natural gas per year from San Diego based Sempra Energy. As part of the deal, Aramco also will make a 25% equity investment in an LNG export facility under development in Port Arthur, Texas.
"With global demand for LNG expected to grow by around 4% per year ... we see significant opportunities in this market and we will continue to pursue strategic partnerships which enable us to meet rising global demand for LNG," Amin Nasser, the company's CEO said in a news release.
"At Sempra Energy, we are developing one of the largest LNG export infrastructure portfolios in North America, with an eye towards connecting millions of consumers to cleaner, more reliable energy sources," said Jeff Martin, CEO of Sempra, in a statement. He added that partnering with Aramco will help develop the facility and enable the export of American natural gas to global markets.
Sempra Energy recently received authorization for the Port Arthur LNG facility from Federal Energy Regulatory Commission to construct and operate the facility and related pipelines.