Sempra and ConocoPhillips sign 20-year Port Arthur LNG deal

Sempra Infrastructure and ConocoPhillips have signed a definitive 20-year sale and purchase agreement (SPA) for four million tonnes per annum (mtpa) of liquefied natural gas (LNG) offtake from the planned Port Arthur LNG Phase 2 development project in Texas.

The agreement extends the strategic alliance between the two companies, which began with the Port Arthur LNG Phase 1 project. For Phase 1, which is currently under construction, ConocoPhillips holds a 30 per cent equity stake and has a 20-year offtake agreement for five mtpa. The first phase is expected to achieve commercial operations in 2027 and 2028.

The proposed Phase 2 development is expected to include two liquefaction trains capable of producing approximately 13 mtpa of LNG, which would increase the total capacity of the Port Arthur facility to approximately 26 mtpa. Sempra continues to target making a final investment decision on Phase 2 in 2025.

Sempra further stated that the project has already secured all its major permits, including approval from the Federal Energy Regulatory Commission in September 2023 and an export authorisation from the US Department of Energy in May 2025.