Petrobras signs 20-year LNG supply agreement with Sempra Infrastructure

Petrobras has signed a 20-year agreement with Sempra Infrastructure for the supply of liquefied natural gas (LNG) from the United States. 

According to Petrobras, the agreement was signed at the end of August and provides for the purchase of 0.8 million tonnes per annum (Mtpa) of LNG. Sempra Infrastructure said the volumes will come from its contracted liquefaction capacity at the Port Arthur LNG Phase 2 project in Jefferson County, Texas.  

Petrobras said the long-term contract is expected to reduce its exposure to spot-market volatility, improve risk management within its natural gas portfolio and provide greater flexibility in meeting supply commitments.  

Port Arthur LNG Phase 2 is currently under construction and will add two liquefaction trains with combined capacity of about 13 Mtpa. Sempra Infrastructure expects trains 3 and 4 to begin commercial operations in 2030 and 2031, respectively. The expansion would increase total liquefaction capacity at Port Arthur LNG from about 13 Mtpa under Phase 1 to as much as 26 Mtpa. 

Sempra Infrastructure said Petrobras is the first South American company to join its LNG customer portfolio. Other long-term customers for Port Arthur LNG Phase 2 include ConocoPhillips, EQT and JERA.