SAN DIEGO and PERTH, Australia, June 29, 2017 /PRNewswire/ -- Sempra Energy (NYSE: SRE) and Woodside Petroleum Ltd. (ASX: WPL, OTC: WOPEY) today announced that their respective subsidiaries, Sempra LNG & Midstream, LLC and Woodside Energy (USA), Inc., have signed a memorandum of understanding (MOU) with Korea Gas Corporation (KOGAS) regarding the development of the proposed Port Arthur LNG liquefaction project in Port Arthur, Texas.
The MOU provides a framework for cooperation and joint discussion by the parties regarding key aspects of the Port Arthur LNG project, including engineering and construction works, operations and maintenance activities, feed gas sourcing, offtake of liquefied natural gas (LNG) and KOGAS as a potential purchaser of LNG from, and equity participant in, the Port Arthur LNG project.
"We're pleased to be collaborating with one of the world's largest LNG buyers and importers," said Octávio M.C. Simões, president of Sempra LNG & Midstream. "KOGAS' expertise and knowledge of the LNG market will complement Sempra's and Woodside's extensive natural gas infrastructure development and combined marketing and operational experience to continue advancing the Port Arthur LNG project."
"Woodside is delighted to further our long-term relationship with KOGAS, one of the LNG industry's leading buyers and investors," said Reinhardt Matisons, executive vice president of marketing, trading and shipping for Woodside. "We look forward to working with KOGAS and other potential buyers to advance the Port Arthur LNG project."
In February 2016, Sempra LNG & Midstream, LLC and Woodside Energy (USA), Inc. signed a project development agreement that provides a framework for the sharing of costs of the Port Arthur LNG project related to the development, technical design, permitting and marketing of the proposed liquefaction project. The proposed Port Arthur LNG project is designed to include two natural gas liquefaction trains, LNG storage tanks, marine berths and ancillary facilities.
Ongoing development of the project is subject to risks and uncertainties and remains contingent upon: completing required commercial agreements; acquiring all necessary permits and approvals; securing financing commitments; securing potential incentives; and satisfying other conditions before making a final investment decision to proceed. The MOU does not commit any party to buy or sell LNG or otherwise participate in the Port Arthur LNG project.
Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company with 2016 revenues of more than $10 billion. The Sempra Energy companies' more than 16,000 employees serve approximately 32 million consumers worldwide.
Woodside is Australia's largest independent oil and gas company with a global portfolio, recognized for its world-class capabilities – as an explorer, a developer, a producer and supplier of energy. Woodside's assets are renowned for their safety, reliability and efficiency, and Woodside is Australia's most experienced LNG operator. Woodside operates 8 percent of global LNG supply.
This press release contains statements that are not historical fact and constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable legislation. These statements can be identified by words like "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "contemplates," "assumes," "depends," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "target," "pursue," "outlook," "maintain," or similar expressions or discussions of guidance, strategies, plans, goals, opportunities, projections, initiatives, objectives or intentions. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Future results may differ materially from those expressed in the forward-looking statements.
Factors, among others, that could cause actual results and future actions to differ materially from those described in forward-looking statements include: actions and the timing of actions, including decisions, new regulations, and issuances of permits and other authorizations by the U.S. Department of Energy, Federal Energy Regulatory Commission, U.S. Environmental Protection Agency and Pipeline and Hazardous Materials Safety Administration, states, cities and counties, and other regulatory and governmental bodies in the United States and other countries in which Sempra operates; the timing and success of business development efforts and construction projects, including risks in obtaining or maintaining permits and other authorizations on a timely basis, risks in completing construction projects on schedule and on budget, and risks in obtaining the consent and participation of partners; the availability of natural gas and liquefied natural gas, and natural gas pipeline and storage capacity; equipment failures; changes in energy markets; volatility in commodity prices; moves to reduce or eliminate reliance on natural gas; risks posed by actions of third parties who control the operations of Sempra's investments, and risks that Sempra's partners or counterparties will be unable or unwilling to fulfill their contractual commitments; weather conditions, natural disasters, accidents, equipment failures, explosions, terrorist attacks and other events that disrupt Sempra's operations, damage our facilities and systems, cause the release of greenhouse gases and harmful emissions, and subject Sempra to third-party liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in excess of applicable policy limits) or may be disputed by insurers; cybersecurity threats to storage and pipeline infrastructure, the information and systems used to operate Sempra's businesses; changes in the tax code as a result of potential federal tax reform, such as the elimination of the deduction for interest and non-deductibility of all, or a portion of, the cost of imported materials, equipment and commodities; changes in foreign and domestic trade policies and laws, including border tariffs, revisions to favorable international trade agreements, and changes that make Sempra's exports less competitive or otherwise restrict Sempra's ability to export; and other uncertainties, some of which may be difficult to predict and are beyond our control.
These risks and uncertainties are further discussed in the reports that Sempra Energy has filed with the Securities and Exchange Commission. These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov, and on the company's website at www.sempra.com. Investors should not rely unduly on any forward-looking statements. These forward-looking statements speak only as of the date hereof, and the company undertakes no obligation to update or revise these forecasts or projections or other forward-looking statements, whether as a result of new information, future events or otherwise.
Sempra LNG & Midstream, LLC and Port Arthur LNG, LLC are not the same as the California Utilities, San Diego Gas & Electric Company (SDG&E) or Southern California Gas Company (SoCalGas), and are not regulated by the California Public Utilities Commission.
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SOURCE Sempra Energy