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

Shell adds another LNG carrier to its fleet

A unit of UK-based LNG giant Shell has added another chartered liquefied natural gas carrier to its fleet.

Chevron, China’s ENN seal second LNG SPA

US energy giant Chevron has signed a second LNG sales and purchase agreement with Chinese independent gas distributor ENN.

Venture Global gets OK to introduce gas to final Plaquemines LNG block

US LNG exporter Venture Global LNG has received approval from the US FERC to introduce natural gas to the 18th and final liquefaction block at the Plaquemines LNG terminal in Louisiana as part of the plant’s commissioning process.

More News Like This

Sempra seeks OK to start construction activities for Port Arthur LNG expansion

US LNG exporter Sempra is seeking approval from the Federal Energy Regulatory Commission to start some construction activities for the second phase of the Port Arthur LNG project in Texas, as it continues to work on a final investment decision on the project.

Sempra, EQT ink 20-year Port Arthur LNG SPA

US natural gas producer EQT has signed a long-term deal with compatriot LNG exporter Sempra Infrastructure, a unit of Sempra, to buy LNG from the proposed second phase of the Port Arthur LNG project in Texas.

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

US energy giant ConocoPhillips has signed a deal with compatriot LNG exporter Sempra Infrastructure, a unit of Sempra, to buy a total of 80 million tonnes of LNG from the proposed second phase of the Port Arthur LNG project in Texas. With this deal, ConocoPhillips will buy a total of 180 million tonnes of LNG from both Port Arthur phases.

Sempra’s ECA LNG project more than 94 percent complete, Port Arthur expansion FID expected in 2025

Sempra's Energia Costa Azul LNG export terminal in Mexico is more than 94 percent complete, while the company and its partners still expect to make a final investment decision on the second phase of the Port Arthur LNG export project in Texas in 2025.