RWE Secures 15 Years of Texas LNG from Sempra

Germany’s RWE Supply & Trading GmBH agreed to a 15-year contract with Sempra Infrastructure to purchase liquefied natural gas from a production terminal set to open in Port Arthur, Texas, in 2027, according to both companies.

With the deal, RWE said it had secured sufficient LNG volumes to make full use of its booked regasification capacities for an import terminal in Brunsbüttel, near Hamburg, that’s scheduled to open in 2026. Germany has struggled to replace Russian pipeline gas since the invasion of Ukraine, and Europe’s largest economy continues shifting to LNG as a substitute.

The partnership was “another important step to diversify Germany’s gas supply and thus contributes to enhancing security of supply in Europe on a long-term basis,” said Andree Stracke, chief executive officer of RWE Supply & Trading.

The volumes from Port Arthur will reach about 2.25 million tons annually. That corresponds to about 3 billion cubic meters of natural gas per year.

Two of five Floating Storage and Regasification Units chartered on behalf of the German government will be operated by RWE, with one anchored in Brunsbüttel starting next month. The company’s planned land-based terminal at the same location will have an annual regasification capacity of 8 billion cubic meters.

In Port Arthur, nearly all the projected off-take capacity for the first phase was now under long-term agreements, Sempra Infrastructure CEO Justin Bird said.

“Today’s announcement moves us one step further along in the process of making Port Arthur LNG a reality,” Bird said.

Both sides also said they will try to lower greenhouse gas emissions throughout the LNG supply chain.