Petrobras will buy 800,000 tons of gas annually from U.S.-based Sempra for 20 years

Rio de Janeiro.- The Brazilian company Petrobras reported this Monday that it signed a long-term contract with the American company Sempra Infrastructure, through which it will receive 800,000 tons of liquefied natural gas (LNG) annually for 20 years, which will allow it to strengthen supply security and reduce its exposure to market price volatility.

The contract was signed at the end of August and announced this Monday in statements by both companies.

The fuel will be supplied from the Port Arthur LNG Phase 2 project, a liquefaction terminal that Sempra is building in Jefferson County, on the coast of the state of Texas (Gulf of Mexico).

Contracting long-term volumes will allow Petrobras to diversify its natural gas portfolio and manage its supply needs with greater predictability, according to the state-owned oil company and Brazil’s largest firm.

“Contracting long-term volumes helps reduce Petrobras’ exposure to market volatility, strengthens the risk management of the natural gas portfolio, and expands the company’s ability to fulfill its contracts more flexibly and securely,” the state-owned company noted in its statement.

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The American company highlighted that Petrobras is the first South American company incorporated into its liquefied natural gas client portfolio.

Sempra Infrastructure confirmed in September of last year the investment in the second phase of the Port Arthur project, which provides for the construction of two gas liquefaction trains with a combined production capacity of approximately 13 million tonnes per annum.

This phase will increase the facility’s total capacity, added to the first stage, to about 26 million tons per year.

The company expects the first phase of Port Arthur to enter commercial operation by the end of 2027, while the second phase, from which the supply contracted by Petrobras will originate, is scheduled to become operational in 2030 and 2031 for the third and fourth trains, respectively.

Sempra Infrastructure, a subsidiary of the energy company Sempra, develops, builds, operates and invests in liquefied natural gas infrastructure, energy networks and low-carbon solutions.