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.

- Advertisements -

Most Popular

Chevron working to resume full Gorgon LNG production after ‘mechanical fault’

Chevron Australia, a unit of US energy giant Chevron, is working to resume full production from its Gorgon LNG...

MOL’s LNG carrier fleet to grow to 104 vessels by March 2025

Japan's shipping giant MOL expects its huge fleet of liquefied natural gas (LNG) carriers to increase to 104 vessels...

HD Hyundai Heavy secures contract to build LNG carrier duo

South Korean shipbuilder HD Hyundai Heavy Industries has won a contract to build two liquefied natural gas (LNG) carriers...

More News Like This

Origin reports lower APLNG revenue

The Australia Pacific LNG project logged lower revenue during the quarter ending March 31 compared to the same quarter...

Australia Pacific LNG names new CEO

Australia Pacific LNG, the operator of the 9 mtpa LNG export facility on Curtis Island near Gladstone, has appointed...

Update: Australia Pacific LNG ships 1000th cargo

Australia Pacific LNG, the operator of the 9 mtpa liquefied natural gas export facility on Curtis Island near Gladstone,...

Tokyo Gas, Mitsui deliver US bio-LNG to Japan

Japan's city gas supplier and LNG importer, Tokyo Gas, and compatriot trading house Mitsui & Co joined forces to...