Petrobras Signs 20-Year LNG Purchase Deal With Sempra Infrastructure

Brazilian state-run oil company Petrobras has signed a 20-year liquefied natural gas (LNG) sale and purchase agreement with Sempra Infrastructure, a U.S. energy infrastructure company and subsidiary of Sempra (NYSE: SRE).

Under the agreement, Petrobras will purchase 0.8 million metric tons per annum (mtpa) of LNG from the Port Arthur LNG liquefaction terminal in Texas.

Securing long-term LNG volumes will help Petrobras reduce its exposure to spot-market price volatility, strengthen risk management of its natural gas portfolio and improve its ability to meet contractual commitments with greater flexibility and supply security, the company said.

The Port Arthur LNG terminal, which Sempra Infrastructure is currently building on the Texas Gulf Coast, will have access to U.S. natural gas resources and integrated logistics infrastructure.

Sempra Infrastructure develops, builds, operates and invests in energy infrastructure, including LNG projects, energy networks and low-carbon solutions.