PERTH (miningweekly.com) – Australian oil and gas major Woodside is considering a joint venture with New York-listed Sempra Energy to develop the proposed Port Arthur liquefaction project, in Texas.
Sempra has signed a memorandum of understanding (MoU) with Woodside, to start discussions and assessment for the potential development of the project.
Sempra told its shareholders this week that the nonbinding MoU was the initial step to explore a joint development, adding that any decision to proceed with a binding agreement was contingent on the completion of project assessments and achieving other necessary internal and external approvals.
The proposed Port Arthur project would be located at a site previously permitted for a liquefied natural gas (LNG) regasification terminal and would be designed to include two natural gas liquefaction trains with a total export capability of about 10-million tonnes a year, or 1.4-billion cubic feet per day, as well as LNG storage tanks and marine facilities for LNG ship berthing and loading.
In March this year, Sempra filed its permit application with the US Department of Energy to export LNG produced from the project to all current and future Free Trade Agreement countries.