Sempra, RWE sign 15-year LNG deal

RWE Supply & Trading GmbH and Sempra Infrastructure have agreed to a 15-year contract for the procurement of liquefied natural gas (LNG) from a production port scheduled to open in Port Arthur, Texas, USA, in 2027.

Port Arthur will produce approximately 2.25 million tons yearly. This is equivalent to around 3 billion cubic meters of natural gas each year.

With the agreement, RWE secured enough LNG volumes to utilize its contracted regasification capacities for an import terminal in Brunsbüttel, near Hamburg, due to open in 2026. Since the invasion of Ukraine, Germany has struggled to replace Russian pipeline gas, and Europe's largest economy continues to switch to LNG as a replacement.

RWE will operate two of the five German government-chartered Floating Storage and Regasification Units, with one anchored near Brunsbüttel starting next month. The land-based terminal will regasify 8 billion cubic meters per year.