Sempra and ConocoPhillips pen huge Port Arthur LNG supply deal

US energy giant ConocoPhillips has signed a deal with compatriot Sempra Infrastructure, a unit of Sempra, to buy in total 100 million tonnes of LNG from the proposed 13.5 mtpa Port Arthur liquefaction project in Texas.

The two firms have executed a 20-year sale and purchase agreement for 5 million tonnes per annum (mtpa) of LNG from Phase 1 of the project, according to a statement by Sempra.

In addition, the two firms have entered into an equity sale and purchase agreement whereby ConocoPhillips will acquire 30 percent of the equity in the first phase of the project.

ConocoPhillips and Sempra Infrastructure also signed a natural gas supply management agreement whereby ConocoPhillips will manage the feedgas supply requirements for Phase 1 of the proposed liquefaction facility.

These deals follow a non-binding heads of agreement the two firms signed in July regarding the LNG project.

Sempra Infrastructure recently said it is planning to take a final investment decision for the first phase of its proposed Port Arthur project in the first quarter of 2023.

This followed the company’s announcement that it has finalized its fixed-price engineering, procurement and construction (EPC) contract for Port Arthur LNG Phase 1 with Bechtel.

The two firms amended and restated the fixed-price contract which now is worth about $10.5 billion.

The liquefaction project would consist of two liquefaction trains each capable of producing up to 6.73 mtpa. Sempra Infrastructure also plans a similarly sized second phase of the project.

Most Popular

Atlantic LNG shipping rates, European prices down

Atlantic LNG freight shipping rates and European prices decreased this week compared to the week before.

Glenfarne becomes majority owner of Alaska LNG

US energy firm Glenfarne has signed definitive agreements with state-owned Alaska Gasline Development Corporation to become the majority owner of the giant Alaska LNG export project.

Petronas to supply LNG to PetroVietnam Gas

Malaysian energy giant Petronas will supply liquefied natural gas (LNG) to PetroVietnam Gas, a unit of state-owned PetroVietnam, next month. The two firms will also look into the possibility of signing long-term LNG contracts.

More News Like This

Excelerate, PetroVietnam Gas to collaborate on US LNG supplies

According to a statement by Excelerate on Friday, the two firms have signed a memorandum of understanding to collaborate...

Sempra sees potential for 90 mtpa LNG export portfolio

Sempra Infrastructure, a unit of Sempra, sees a potential to build an LNG export portfolio in the US and Mexico of up to 90 million tonnes per annum, according to Justin Bird, CEO of Sempra Infrastructure.

Sempra eyes Port Arthur LNG expansion FID in 2025

Sempra Infrastructure, a unit of Sempra, expects to make a final investment decision on the second phase of its Port Arthur LNG export project in Texas in 2025.

Origin: APLNG revenue climbs

Origin said in its quarterly report that APLNG revenue reached about A$2.71 billion ($1.69 billion) in the October-December period. Compared...