ConocoPhillips is going all-in on a massive liquefied natural gas project in Texas that a subsidiary of San Diego energy giant Sempra is building on the Gulf Coast of Texas.
After already agreeing to purchase 5 million metric tons of gas per year from the first phase of the Port Arthur LNG project, ConocoPhillips on Thursday announced a 20-year partnership with Sempra Infrastructure to take an additional 4 million metric tons a year during the second phase of the site’s planned expansion.
The companies did not disclose financial details of the purchase and sale agreement.
The deal “advances our global LNG portfolio strategy as we build a flexible and reliable LNG supply network to meet growing energy demand,” Conoco Phillips CEP Ryan Lance said in a statement.
Still under construction, Sempra Infrastructure’s Port Arthur LNG project will house two large storage tanks and two processing units, called “trains” in the parlance of the industry, that enable specially built tankers to ship some 13.5 metric tons of liquefied gas to destinations around the world each year.
Commercial operations are scheduled to begin in 2027 for the first train and 2028 for the second.
Phase 2 of the project expects to add two more trains to the facility, nearly doubling its export capacity.
Sempra Infrastructure is lining up commitments from banks and financial institutions to underwrite the costs of the buildout, and the company says it plans to announce a final investment decision on Phase 2 later this year.
“This next phase reflects both companies’ shared view of the opportunity to connect American producers of natural gas with growing markets overseas,” Sempra CEO Jeff Martin said, “while also driving economic growth and job creation here at home.”
Sempra has become a major player in the LNG sphere, as countries around the world look to use natural gas rather than coal to help power their electric grids. Markets in Asia are a frequent destination. So is Europe, where U.S.-produced natural gas acts an alternative to gas from Russia.
Sempra Infrastructure is already majority owner of the $10.5 billion Cameron LNG facility on the coast of Louisiana that opened in August 2020. The company is also adding an export component to an existing LNG terminal near Ensenada, Mexico, called Energía Costa Azul, which is expected to be finished by spring of 2026.
Environmental groups oppose LNG because of the amount of methane emitted by natural gas. They say exports extend the world’s reliance on fossil fuels, rather than transitioning to renewable energy sources.
In the LNG process, facilities take natural gas, cool it to minus 260 degrees Fahrenheit, load it onto cargo tanks on double-hulled ships and then export it.
Originally Published: August 22, 2025 at 11:46 AM PDT