Sempra (NYSE:SRE) added a long-term customer commitment on September 14, when its infrastructure subsidiary announced a 20-year sales and purchase agreement with Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR). The agreement covers approximately 0.8 million tonnes annually of liquefied natural gas, or LNG.
Supply will come from the subsidiary's contracted liquefaction capacity at Port Arthur LNG Phase 2 in Texas. The project is under construction, with trains 3 and 4 expected to begin commercial operations in 2030 and 2031, respectively. The agreement improves visibility into future sales, while the earnings contribution depends on delivery and contract economics.
Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR) becomes the infrastructure subsidiary's first South American LNG customer. That broadens the geographic base of buyers and establishes a commercial relationship extending over two decades.
For Sempra (NYSE:SRE), the practical benefit is an external buyer for part of the subsidiary's contracted capacity. Securing that relationship before startup could reduce the need to find buyers for the covered volumes as production approaches, while supporting longer-term supply planning.
The annual commitment equals approximately 6.2% of Phase 2's planned 13-million-tonne annual capacity. This provides a measure of scale, although it does not establish the percentage of capacity still available for sale.
#agreement #petr #supply #term
Supply will come from the subsidiary's contracted liquefaction capacity at Port Arthur LNG Phase 2 in Texas. The project is under construction, with trains 3 and 4 expected to begin commercial operations in 2030 and 2031, respectively. The agreement improves visibility into future sales, while the earnings contribution depends on delivery and contract economics.
Petróleo Brasileiro S.A. - Petrobras (NYSE:PBR) becomes the infrastructure subsidiary's first South American LNG customer. That broadens the geographic base of buyers and establishes a commercial relationship extending over two decades.
For Sempra (NYSE:SRE), the practical benefit is an external buyer for part of the subsidiary's contracted capacity. Securing that relationship before startup could reduce the need to find buyers for the covered volumes as production approaches, while supporting longer-term supply planning.
The annual commitment equals approximately 6.2% of Phase 2's planned 13-million-tonne annual capacity. This provides a measure of scale, although it does not establish the percentage of capacity still available for sale.
#agreement #petr #supply #term
14 hours ago
