Sempra, ConocoPhillips seal another 20-year Port Arthur LNG SPA

Under the new SPA, ConocoPhillips will buy 4 million tonnes per annum of LNG on a free-on-board basis for 20 years, according to separate statements by the partners.

This deal adds to an SPA that the two firms signed back in 2022.

ConocoPhillips will buy 5 million tonnes per annum for 20 years from the project’s first phase under the first LNG supply deal.

In addition, ConocoPhillips holds a 30 percent equity stake in the first phase of the project.

“Although a final investment decision is pending for Phase 2, the company’s participation in that project will be offtake only,” ConocoPhillips said in its statement.

In March 2023, Sempra Infrastructure took a final investment decision for the first phase of its Port Arthur LNG export project worth about $13 billion.

Bechtel won the $10.5 billion EPC contract, which includes building two trains with a total capacity of about 13 mtpa and two storage tanks with a capacity of 160,000 cbm.

The expected commercial operation dates for train 1 and train 2 are 2027 and 2028, respectively.

Phase 2 FID expected this year

Similarly, the Port Arthur LNG Phase 2 development project is expected to include two liquefaction trains capable of producing approximately 13 mtpa of LNG, increasing the total liquefaction capacity of the Port Arthur LNG facility to 26 mtpa.

Sempra confirmed in its statement on Thursday that it continues to target making a financial investment decision on Phase 2 in 2025.

Port Arthur LNG phase has received all the major permits necessary for taking FID.

In May, the project received the Department of Energy’s non-FTA export authorization.

Phase 2 also made commercial progress recently.

Last month, Sempra executed a 20-year SPA with Japan’s Jera for 1.5 mtpa of offtake capacity.