US LNG Signs Further European Deal

US Sempra Energy is set to sell 2.25mn tonnes per annum of LNG to Germanys RWE, which is making efforts to move away from Russian gas supply.

• RWE has reduced Russian gas imports from 15 TWh pre-invasion to 4 TWh.
• US LNG demand from Europe has soared since the invasion as companies scramble for alternative supplies despite the increased costs involved versus piped. Germany in particular, has made large investment commitments to increase LNG import capacity on its north coast to drive LNG import capacity from the US and elsewhere.
• Sempra will supply gas for 15 years from its Port Arthur Phase 1 project for the RWE deal. Sempra signed a separate deal with Poland’s PGNiG for three millions tonnes of LNG per annum earlier in the month.