Australia's Woodside Investigates Potential of LNG Project in Texas

Australia’s Woodside has decided to investigate potential development of a natural gas liquefaction facility in Texas, US.

In a statement published Thursday, the Australian company said its affiliate, Woodside Energy (USA) Inc., has entered into a non-binding Memorandum of Understanding (MoU) with Sempra LNG, an affiliate of Sempra Energy.

Under the non-binding MoU, Woodside and Sempra LNG will commence preliminary discussions and assessments pertaining to the potential development of a natural gas liquefaction facility at Port Arthur, Texas.

The potential Port Arthur Liquefaction Project is located about 140km east of Houston, at a site previously permitted for a LNG regasification terminal.

The potential project would look to include two natural gas liquefaction trains with a total export capability of approximately 10 million metric tons per annum, LNG storage tanks and marine facilities for LNG ship berthing and loading.

Any decision by Woodside Energy to proceed with a binding arrangement, including the establishment of a joint venture or partnership with Sempra LNG in relation to the project, remains subject to further due diligence and necessary internal and external approvals, the company said.