Saudi Aramco signs the largest single US LNG deal at Port Arthur LNG

Sempra Energy and Saudi Aramco announced on 22 May that their respective subsidiaries, Sempra LNG and Aramco Services Company, have signed a heads of agreement (HOA), which anticipates the negotiation and finalisation of a definitive 20-year sale-and-purchase agreement (SPA) for 5 million tonnes per annum (mmtpa) from the Port Arthur LNG export project in Texas. If converted to an SPA, this will be one of the largest single US LNG deals ever signed, and the biggest globally since 2013. It signals Saudi Aramco's intent to become a global gas player and develop a broad LNG portfolio, positions the 11 mmtpa Port Arthur LNG project for a late 19 / early 20 FID, and highlights the continued strength of market interest in US LNG.