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

Golar plans new FLNG order in 2025

Floating LNG player Golar LNG is working with shipyards to order one or more floating LNG production units in 2025.

Golar chairman says FLNG industry set for ‘massive’ growth

Golar LNG will continue to expand its fleet of floating LNG production units in an industry set for "massive" growth, according to Golar LNG's chairman, Tor Olav Trøim.

Venture Global to start CP2 LNG construction after FERC approval

US LNG exporter Venture Global LNG plans to start construction of its CP2 LNG project in Louisiana "immediately" following approval from the US FERC.

More News Like This

China’s Sinopec secures price cut for APLNG contract

China’s state-controlled energy giant Sinopec has secured a lower price for its long-term liquefied natural gas supply deal with Australia Pacific LNG following a price review, according to APLNG shareholder Origin Energy.

ConocoPhillips seals Chinese LNG supply deal

US energy giant ConocoPhillips has signed a long-term LNG supply deal with China's Guangdong Pearl River Investment Management Group.

Australia Pacific LNG pens new domestic gas deals

Australia Pacific LNG, the operator of the 9 mtpa LNG export facility on Curtis Island near Gladstone, has signed two new domestic gas sale agreements.

Sempra’s ECA LNG export project starts pre-commissioning activities

Sempra's Energia Costa Azul LNG export terminal in Mexico is ready to start pre-commissioning activities, according to Karen Sedgwick, Sempra’s executive VP and CFO.