Aramco, Sempra Announce Deal for Royalties of Equity and Purchase of LNG from Port Arthur

Saudi Aramco and Sempra announced that their respective subsidiaries have executed a non-binding heads of agreement (HoA) for a 20-year sale and purchase agreement (SPA) for liquefied natural gas (LNG) offtake of 5.0 million tons per annum (Mtpa) from the Port Arthur LNG Phase 2 expansion project. (SPA)
Saudi Aramco and Sempra announced that their respective subsidiaries have executed a non-binding heads of agreement (HoA) for a 20-year sale and purchase agreement (SPA) for liquefied natural gas (LNG) offtake of 5.0 million tons per annum (Mtpa) from the Port Arthur LNG Phase 2 expansion project. (SPA)
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Aramco, Sempra Announce Deal for Royalties of Equity and Purchase of LNG from Port Arthur

Saudi Aramco and Sempra announced that their respective subsidiaries have executed a non-binding heads of agreement (HoA) for a 20-year sale and purchase agreement (SPA) for liquefied natural gas (LNG) offtake of 5.0 million tons per annum (Mtpa) from the Port Arthur LNG Phase 2 expansion project. (SPA)
Saudi Aramco and Sempra announced that their respective subsidiaries have executed a non-binding heads of agreement (HoA) for a 20-year sale and purchase agreement (SPA) for liquefied natural gas (LNG) offtake of 5.0 million tons per annum (Mtpa) from the Port Arthur LNG Phase 2 expansion project. (SPA)

Saudi Aramco, one of the world's leading integrated energy and chemicals companies, and Sempra, one of North America's leading energy infrastructure companies, announced on Wednesday that their respective subsidiaries have executed a non-binding heads of agreement (HoA) for a 20-year sale and purchase agreement (SPA) for liquefied natural gas (LNG) offtake of 5.0 million tons per annum (Mtpa) from the Port Arthur LNG Phase 2 expansion project.

The HoA further contemplates Aramco's 25% participation in the project-level equity of Phase 2.

The parties expect to execute a binding LNG SPA and definitive equity agreements with terms substantially equivalent to those in the HoA, with the SPA and equity agreements subject to several conditions.

“We are excited to take this next step into the LNG sector,” said Aramco upstream president Nasir Al-Naimi. “As a potential strategic partner in the Port Arthur LNG Phase 2 project, Aramco is well-placed to grow its gas portfolio with the aim of meeting the world's growing need for lower-carbon sources of energy. This agreement is a major step in Aramco's strategy to become a leading global LNG player.”

Sempra chairman and chief executive Jeffrey Martin said: "The planned expansion of Port Arthur LNG would help facilitate the broad distribution of US natural gas across global energy markets. By expanding the Port Arthur LNG facility's global reach, we can improve energy security while providing a lower-carbon alternative to coal for electricity production."

Port Arthur LNG is a natural gas liquefaction and export terminal in southeast Texas with direct access to the Gulf of Mexico. The Port Arthur LNG Phase 1 project is currently under construction and consists of trains 1 and 2, as well as two LNG storage tanks and associated facilities.

The Port Arthur LNG Phase 2 project is a competitively positioned expansion of the site to include the addition of up to two trains capable of producing up to 13 million tons yearly.

At the heart of Sempra Infrastructure's flagship Port Arthur Energy Hub, Port Arthur LNG has the potential to expand to a total of eight trains, which would position it as one of the world's most significant LNG export facilities. The facility is expected to play an important role in enhancing global energy security and resilience.

Moreover, Sempra Infrastructure is actively advancing infrastructure projects within the Port Arthur Energy Hub, addressing the rising demand for lower-carbon fuels and reducing carbon intensity. This includes the proposed Titan Carbon Sequestration project.



How Will Gulf Stock Markets Perform this Summer?

Saudi Stock Market (Tadawul) (AFP)
Saudi Stock Market (Tadawul) (AFP)
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How Will Gulf Stock Markets Perform this Summer?

Saudi Stock Market (Tadawul) (AFP)
Saudi Stock Market (Tadawul) (AFP)

Financial analysts and market experts predict a downturn for Gulf stock markets this summer. They foresee lower stock values, reduced trading volumes, sectoral stagnation, delayed investment decisions, and a focus on holding strong positions in high-performing large-cap stocks.

This trend is driven by the majority of traders taking their annual vacations during this period. Typically, sectors like travel, tourism, aviation, and hospitality see seasonal growth in summer.

From the start of 2024 to mid-year, Gulf markets have shown mixed results. Muscat Securities Market rose by 3.8%, Bahrain Bourse by 3.5%, and Kuwait Stock Exchange by 1.33%. However, Qatar Stock Exchange dropped by 8.02%, Abu Dhabi Securities Exchange by 5.4%, Saudi Arabia’s main index by 1.99%, and Dubai Financial Market slightly by 0.7%.

Tareq Al-Ateeq, a financial analyst, told Asharq Al-Awsat that investor behavior across Gulf markets tends to align during summer due to holiday seasons and high temperatures, leading to lower liquidity and fluctuating market indices.

Investors are delaying decisions until summer ends, focusing on robust positions in large-cap and defensive stocks, which is expected to dampen market liquidity and activity in July and August 2024.

Certain sectors like travel, tourism, aviation, and hospitality are anticipated to see increased trading during the summer. Some investors aim to capitalize on market downturns by adjusting their sector allocations.

In 2023, markets like Dubai saw a 6% monthly increase, with Saudi Arabia's market index rising by 4%. Oman also experienced a 3.1% increase, while Qatar and Bahrain markets declined by 0.8% and 0.3% respectively.

Key sectors such as consumer goods, utilities, tourism, hospitality, and energy are showing increased trading activity and interest during the summer season.