Saudi Aramco has entered into a significant agreement with US energy company Sempra to purchase 5 million tons of liquefied natural gas (LNG) annually. This non-binding agreement outlines the terms for Saudi Aramco to procure LNG over a 20-year period, starting from the second phase of the Port Arthur LNG project located in Texas. Additionally, Saudi Aramco will take a 25% equity stake in the project's second phase.

The Port Arthur LNG project is a major LNG export facility in North America, encompassing liquefaction facilities and an export terminal along the Gulf Coast. The second phase of the project aims to produce approximately 13 million tons of LNG annually.

Currently, Saudi Aramco and Sempra are in discussions to finalize a binding purchase and sale agreement, along with a definitive equity participation agreement. These agreements are contingent upon meeting certain conditions, as outlined by Saudi Aramco's press service.

This agreement marks Saudi Aramco's strategic move to secure a substantial supply of LNG from US projects, following earlier agreements, including a non-binding deal with NextDecade for LNG procurement from the Rio Grande LNG project.