Williams Enters Heads of Agreement with Sempra Infrastructure to Integrate LNG Value Chain Capabilities

Williams (NYSE: WMB) today announced that it has entered into a non-binding heads of agreement (HOA) with Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE) (BMV: SRE), that establishes the elements of an integrated platform to further connect the prolific Haynesville basin to growing LNG export demand along the Gulf Coast and around the world. The HOA contemplates long-term gas sales of approximately 0.5 billion cubic feet per day (Bcf/d) delivered near Gillis, Louisiana, and two LNG offtake agreements for approximately 3 million tons per annum (mtpa) in the aggregate from Sempra Infrastructure’s proposed Cameron LNG Phase 2 and Port Arthur LNG projects. These proposed transactions complement Williams’ recently sanctioned low-carbon Louisiana Energy Gateway (LEG) gathering project and are expected to include connections to pipelines serving Sempra Infrastructure’s LNG export facilities.

As part of the proposed transaction, Williams and Sempra Infrastructure plan to form a strategic joint venture to own, expand and operate the Cameron Interstate Pipeline that is expected to deliver natural gas to the proposed Cameron LNG Phase 2 in Hackberry, Louisiana. Additional pipelines are also expected to be owned by the joint venture, including the Louisiana Connector Pipeline expected to deliver natural gas to Sempra Infrastructure’s proposed Port Arthur LNG facility, located in Port Arthur, Texas.

“Williams is pleased to pursue this strategic transaction with Sempra Infrastructure. We see it as an opportunity to combine our capabilities along the natural gas value chain and increase the delivery of low-carbon, affordable and reliable natural gas from the wellhead to the growing international market,” said Alan Armstrong, president and CEO of Williams. “Facilitating the delivery of next generation natural gas to ease energy constraints at home and overseas, while also helping to meet domestic and global climate goals, is central to our natural gas focused strategy, and we look forward to being well aligned with Sempra Infrastructure’s unique capabilities and competitive advantages in the LNG infrastructure space. Coupling our strengths in the midstream infrastructure space will allow us to provide unrivaled access to international markets for our producing customers.”

“We are excited to continue advancing our U.S. Gulf Coast LNG and associated pipeline projects as we work to help satisfy a growing global demand for cleaner, more reliable energy sources,” said Justin Bird, CEO of Sempra Infrastructure. “We look forward to advancing our relationship with Williams, a like-minded company that shares our commitment to building a future of energy abundance, affordability and security.”

Williams’ LEG project, which is expected to go into service in late 2024, will gather 1.8 Bcf/d of natural gas produced in the Haynesville basin. Williams, through partnerships with Context Labs, Encino Environmental and Satlantis, is integrating technology solutions into the project to enable the measurement of end-to-end, verifiable and transparent emissions data to demonstrate the low carbon benefits of produced and delivered Haynesville natural gas. Williams is also exploring the enhancement of the LEG project with the addition of carbon capture and storage infrastructure that will further decarbonize the natural gas value chain.

Qatarenergy, Conocophillips Sign Long-Term Supply Agreement Of Qatari LNG To Germany For At Least 15 Years

QatarEnergy announced the signing of two long-term LNG sale and purchase agreements (SPAs) between QatarEnergy and ConocoPhillips affiliates for the delivery of up to two (2) million tons per annum (MTPA) of LNG from Qatar to Germany.
Pursuant to the two SPAs, a ConocoPhillips wholly owned subsidiary will purchase the agreed quantities to be delivered ex-ship to the “German LNG” receiving terminal, which is currently under development in Brunsbüttel in northern Germany, with deliveries expected to start in 2026.
The LNG volumes will be sourced from the two joint ventures between QatarEnergy and ConocoPhillips that hold interests in Qatar’s North Field East (NFE) and North Field South (NFS) projects.
The SPAs were signed today by His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, and Mr. Ryan Lance, the Chairman and CEO of ConocoPhillips, at a special event held at QatarEnergy’s headquarters in Doha in the presence of senior executives from both companies.
Speaking at the signing ceremony, His Excellency Mr. Saad Sherida Al-Kaabi said: “We are pleased to sign these agreements with our partner ConocoPhillips to supply up to 2 million tons per annum of LNG to Germany from the two QatarEnergy-ConocoPhillips joint ventures in the NFE and NFS LNG expansion projects respectively, starting in 2026. These agreements are momentous for several reasons. They mark the first ever long-term LNG supply to Germany with a supply period that extends for at least 15 years, thus contributing to Germany’s long-term energy security. They also represent the culmination of efforts between two trusted partners, QatarEnergy and ConocoPhillips, over many years, to provide reliable and credible LNG supply solutions to customers across the globe, and today, to German end-consumers. This is a concrete demonstration of QatarEnergy’s resolve to provide reliable energy supplies to all major markets around the world, and of our commitment to the German people.”
His Excellency Minister Al-Kaabi added: “Germany is the largest gas market in Europe, with significant demand in the industrial, power, and household sectors, and we are committed to contribute to the energy security of Germany and Europe at large. The agreements we are about to sign today are a further manifestation of this commitment, which is reinforced through the sizeable investments we have made and continue to make along the entire gas value chain encompassing production capacity increases in Qatar and the Golden Pass LNG export project in the United States. Such investments also include the execution of the largest LNG ship building program in the history of the energy sector, as well as securing long-term commitments in LNG receiving infrastructure in several European countries. Our dialogue with our European partners continues with the aim of achieving greater energy security, long-term market stability, and a smoother energy transition for the benefit of all.”
Minister Al-Kaabi expressed his thanks and appreciation to the teams from both sides whose hard work and dedication made these agreements possible and concluded his remarks by paying tribute to the leadership of His Highness the Amir Sheikh Tamim bin Hamad Al Thani, and His wise leadership and unwavering support to Qatar’s energy sector.
On his part, Mr. Ryan Lance, the Chairman and CEO of ConocoPhillips said: “QatarEnergy and ConocoPhillips are excited for the opportunity to responsibly and securely supply world markets with LNG from the Qatari expansion projects.”
“These agreements will provide an attractive LNG offtake solution for our new joint ventures with QatarEnergy and position the joint ventures as reliable sources of LNG supply into Europe,” Mr. Lance added.
ConocoPhillips’ partnership in the North Field LNG Expansion Projects is made up of a 3.125% share in the NFE project and a 6.25% share in the NFS project, which are planned to commence production in 2026 and 2027, respectively.

Qatarenergy trading to offtake and market 70% of LNG produced by golden pass

Affiliates of QatarEnergy and ExxonMobil have agreed to independently offtake and market their respective proportionate equity shares of LNG produced by the Golden Pass LNG Export Project located in Sabine Pass, Texas in the United States of America (“Golden Pass LNG”). Pursuant to the agreement, QatarEnergy Trading LLC, a wholly owned subsidiary of QatarEnergy, will offtake, transport, and trade 70% of the LNG produced by Golden Pass LNG.

The construction of Golden Pass LNG, which has a total production capacity in excess of 18 million tons of LNG per annum, is well underway with first LNG production expected by the end of 2024.
Commenting on this development, His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, said: “The energy market is highly dynamic and undergoing a period of transformation, and LNG will continue to play a key role in meeting global energy demand and ensuring security of supply. This agreement is an important addition to our efforts to meet demand for cleaner energy and to support the economic and environmental requirements for a practical, equitable and realistic energy transition.”

 
H.E. Minister Al-Kaabi added: “QatarEnergy is the global leader in LNG, the cleanest of all fossil fuels, and it is only natural for us to increase focus on LNG trading and portfolio optimization to deliver innovative LNG solutions that meet the needs of our customers across the globe. I am proud of what QatarEnergy Trading has achieved in the very short time since its inception and with this new addition to its portfolio, I am confident that QatarEnergy Trading will accelerate its efforts to deliver on our aspiration of becoming a world leader in LNG trading in the near future.”

As a result of this arrangement, Ocean LNG Limited, a joint venture established in 2016 between affiliates of QatarEnergy and ExxonMobil for the purpose of offtaking and marketing the entire production of Golden Pass LNG, has ceased operations, and will be wound down.

Qatarenergy And Sinopec Sign A 27-Year 4 Million Tons Per Annum LNG Supply Agreement To China

QatarEnergy entered into a 27-year Sale and Purchase Agreement (SPA) with China Petroleum & Chemical Corporation (Sinopec) for the supply of 4 million tons per annum (MTPA) of LNG to the People's Republic of China.
Under the terms of the SPA, the contracted LNG volumes will be supplied from QatarEnergy’s North Filed East (NFE) LNG expansion project and will be delivered to Sinopec’s receiving terminals in China.
His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, and Dr. MA Yongsheng, the Chairman of Sinopec, signed the agreement today during a hybrid virtual / physical ceremony. Joining H.E. Minister Al-Kaabi at QatarEnergy’s headquarters in Doha were senior executives from both companies, while Dr. MA and other high level Sinopec executives participated virtually from Beijing.
In his remarks at the signing ceremony, His Excellency Minister Al-Kaabi said: “We are pleased to enter into this agreement, which will further solidify the excellent bilateral relations between the People’s Republic of China and the State of Qatar and help meet China's growing energy needs. In addition, it opens a new and exciting chapter in our relationship with Sinopec, one that is very special and spans a number of different areas, and which we are excited about further growing and expanding into the 2050s.”
His Excellency Minister Al-Kaabi added: “This is the first long-term SPA from the NFE project to be announced, and marks the longest gas supply agreement in the history of the LNG industry.”
H.E. Minister Al-Kaabi concluded his remarks by expressing his thanks and appreciation to the working teams from Sinopec, QatarEnergy and Qatargas, for their dedication and sincere efforts to conclude the SPA, and gratitude to the leadership of His Highness the Amir Sheikh Tamim bin Hamad Al Thani, for his unwavering support to Qatar’s energy sector.
On his part, Dr. MA Yongsheng, the Chairman of Sinopec, said: “The signing of the long-term LNG SPA with QatarEnergy is a milestone and an important part of the integrated cooperation between the two sides on the NFE project. Qatar is the world’s largest LNG supplier, and China is the world’s largest LNG importer. The two countries share inherent complementarities and a good foundation for energy cooperation. The friendly and close ties between the two countries have created a good environment for us to constantly deepen cooperation. Sinopec attaches great importance to the cooperation with QatarEnergy, who we regard as a strategic, long-term and all-round partner, and we are expecting more cooperation fruits to come. Sinopec has been always committed to the development of green and clean energy. Our integrated cooperation with QatarEnergy on the NFE project could not only meet the needs of the Chinese market, but also reflect Sinopec's commitment to a low-carbon, green, safe, responsible and sustainable development path.”
The agreement is the second LNG SPA between QatarEnergy and Sinopec, following the 10-year SPA signed in March 2021 for the supply of 2 MTPA to China.
The SPA is also the first long term LNG offtake agreement from the NFE Expansion project, and comes on the heels of QatarEnergy’s conclusion of the formation of eight international partnership agreements for the North Field East and North Field South (NFS) projects, which are expected to come online in 2026 and 2027, respectively.
QatarEnergy has also concluded construction contracts and long-term time charter agreements for 60 LNG carriers as part of its historic LNG shipbuilding program in support of both the NFE and NFS expansion projects, with the number expected to grow to almost 100 in the future.

Sempra Announces Strategic Partnership with ConocoPhillips for Port Arthur LNG

Sempra today announced that its subsidiary, Sempra Infrastructure, and ConocoPhillips (NYSE: COP) have executed a 20-year Sale and Purchase Agreement (SPA) for 5 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) from Phase 1 of the proposed Port Arthur LNG project under development in Jefferson County, Texas.

The parties have also entered into an equity sale and purchase agreement whereby ConocoPhillips will acquire 30% of the equity in Phase 1 of Port Arthur LNG, and a natural gas supply management agreement whereby ConocoPhillips will manage the feedgas supply requirements for Phase 1 of the proposed liquefaction facility.

"At Sempra, we certainly believe that great projects are the result of great partnerships," said Jeffrey W. Martin, chairman and chief executive officer of Sempra. "That is why we are excited to announce a broad strategic relationship with ConocoPhillips, which has a growing global footprint across the LNG value chain. Together, we have a shared view of the role this facility can play in supporting global economies with energy supplies that advance both energy security and environmental goals."

"We are excited to partner with Sempra, and our participation in the Port Arthur LNG project will further enhance our portfolio as we continue to respond to global demand for reliable supply of natural gas," said Ryan Lance, chairman and chief executive officer of ConocoPhillips. "Sempra has a demonstrated track record of success and shares our commitment to a lower-carbon future."

Sempra Infrastructure recently announced it is expecting to make a final investment decision (FID) for Phase 1 of the liquefaction project in the first quarter of 2023. Additionally, the company announced last month that it had finalized an engineering, procurement and construction (EPC) contract with Bechtel Energy for Phase 1. Under the terms of the EPC contract, Bechtel will perform the detailed engineering, procurement, construction, commissioning, startup, performance testing and operator training activities.

The Port Arthur LNG Phase 1 project is permitted and expected to include two natural gas liquefaction trains and LNG storage tanks, and associated facilities capable of producing, under optimal conditions, up to approximately 13.5 Mtpa of LNG. A similarly sized Port Arthur LNG Phase 2 project is also competitively positioned and under active marketing and development.

Development of Phase 1 and Phase 2 of the Port Arthur LNG project is contingent on completing the required commercial agreements, securing all necessary permits, obtaining financing and reaching an affirmative final investment decision, among other factors.

Mozambique’s first LNG cargo departs from Coral Sul FLNG, offshore the Rovuma basin

Eni, as Delegated Operator of the Coral South project on behalf of its Area 4 Partners (ExxonMobil, CNPC, GALP, KOGAS and ENH), informs that the first shipment of liquefied natural gas (LNG) produced from the Coral gas field, in the ultra-deep waters of the Rovuma Basin, has just departed from Coral Sul Floating Liquefied Natural Gas (FLNG) facility.

Eni CEO Claudio Descalzi commented that “The first shipment of LNG from Coral South project, and from Mozambique, is a new and significant step forward in Eni’s strategy to leverage gas as a source that can contribute in a significant way to Europe’s energy security, also through the increasing diversification of supplies, while also supporting a just and sustainable transition. We will continue to work with our partners to ensure timely valorization of Mozambique’s vast gas resources”.

Coral South is a landmark project for the industry and firmly places Mozambique onto the global LNG stage. The project, sanctioned in 2017, comes on stream after just 5 years, in line with the initial budget and schedule, despite the disruptions caused by the Covid pandemic. This result was made possible thanks to Eni’s distinctive phased and parallelized approach, a very effective execution planning, and the strong commitment by all partners and the unwavering support of the Government of Mozambique. Coral Sul FLNG has a gas liquefaction capacity of 3.4 million tons per year and will produce LNG from the 450 billion cubic meters of gas of the Coral reservoir.

About Area 4
Area 4 is operated by Mozambique Rovuma Venture S.p.A. (MRV), an incorporated joint venture owned by Eni, ExxonMobil and CNPC, which holds a 70 percent interest in the Area 4 exploration and production concession contract. In addition to MRV, the other shareholders in Area 4 are Galp, KOGAS and ENH, each with a 10 percent participation interest. Eni is the Delegated Operator for the Coral South project and all Upstream activities in Area 4.

Excelerate Energy and the German Government Sign FSRU Charter Agreement

Excelerate Energy, Inc. (NYSE: EE) (“Excelerate”) and the Government of the Federal Republic of Germany signed a five-year contract today in Berlin to charter the floating storage and regasification unit (FSRU) Excelsior to help provide energy security and supply diversification to Germany while supporting the country’s transition to renewable energy.

Excelerate’s President and CEO Steven Kobos and Dr. Patrick Graichen, State Secretary at the Federal Ministry for Economic Affairs and Climate Action (BMWK), signed the contract at BMWK headquarters in a ceremony also attended by Woodward Clark Price, Chargé d’Affaires of the United States Embassy in Berlin.

“The deployment of the FSRU Excelsior to Germany demonstrates our commitment to strengthening energy security at a time when traditional energy sources have proven unreliable,” said Steven Kobos, President and CEO of Excelerate. “FSRUs have the ability to offer flexible access to greater supply diversification and can serve as a complementary backstop for the rapid scaling of green energy projects. These benefits are consistent with the stated goals of the U.S.-EU Task Force on Energy Security.”

BMWK previously announced that a consortium including Tree Energy Solutions, E.ON, and Engie would jointly develop and implement Germany’s fifth FSRU import terminal using an Excelerate vessel. The FSRU will accelerate the development of TES’ green hydrogen terminal at Wilhelmshaven.

Under the terms of the agreement, the FSRU Excelsior will go on charter in the first quarter of 2023. The Federal Republic of Germany intends to deploy the vessel in the Port of Wilhelmshaven. The Excelsior, which has an LNG storage capacity of 138,000 m3 and send-out capacity of 5 bcm/y, will go to drydock at the end of 2022 for scheduled maintenance prior to its deployment to Germany.