ConocoPhillips has announced the signing of a long-term sales and purchase agreement to acquire 4 million tonnes per annum (MTPA) of liquefied natural gas from the Port Arthur LNG Phase 2 project, which is being developed by Sempra Infrastructure, a subsidiary of Sempra, located in Jefferson County, Texas.
The agreement allows ConocoPhillips to offtake LNG over a 20-year term on a free-on-board basis, enhancing the company’s capacity to reliably supply natural gas to key global markets.
Ryan Lance, chairman and CEO of ConocoPhillips, expressed satisfaction in extending the partnership with Sempra Infrastructure, stating that the agreement positions them as a major offtaker at Port Arthur LNG Phase 2. He noted that this SPA is a significant step in advancing ConocoPhillips’ global LNG portfolio strategy, aiming to create a flexible and reliable LNG supply network to meet increasing energy demand.
Jeffrey W. Martin, chairman and CEO of Sempra, highlighted the growing importance of US LNG in addressing the energy security needs of America’s allies. He expressed enthusiasm for the partnership with ConocoPhillips to expand the Port Arthur LNG facility, emphasising the shared vision of connecting American natural gas producers with expanding overseas markets while contributing to economic growth and job creation domestically.
In July 2022, ConocoPhillips had previously signed a 20-year agreement for the offtake of 5 MTPA of LNG and secured a 30 percent equity stake in Phase 1 of Port Arthur LNG, which is anticipated to commence operations in 2027. Although the final investment decision for Phase 2 is still pending, ConocoPhillips’ involvement in that project will be limited to offtake only.
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