ConocoPhillips signed a 20-year sales and purchase agreement (SPA) for 4 million tonnes per annum (mtpa) of LNG from Sempra’s Port Arthur LNG Phase 2 project, the companies announced Aug. 21.
The deal extends Conoco’s partnership with Sempra, following its earlier participation in Phase 1 of the facility. Conoco owns a 30% stake in Phase 1 and has secured 5 mtpa of offtake.
The pending Phase 2 investment will involve offtake only, with no equity participation. In total, ConocoPhillips has secured 9 mtpa from Port Arthur LNG.
“ConocoPhillips is pleased to extend our partnership with Sempra Infrastructure to Port Arthur LNG Phase 2, where we will be a major offtaker,” said Phillips CEO Ryan Lance. “This SPA advances our global LNG portfolio strategy as we build a flexible and reliable LNG supply network to meet growing energy demand.”
Sempra expects Phase 1, currently under construction, to begin commercial operations in 2027. The company has secured its key permits for the construction of Phase 2, but has not reached a final investment decision.
“The role of U.S. LNG in meeting the energy security needs of America’s allies continues to grow,” said Jeffrey W. Martin, chairman and CEO of Sempra. “This next phase reflects both companies’ shared view of the opportunity to connect American producers of natural gas with growing markets overseas, while also driving economic growth and job creation here at home.”