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.