Sempra’s subsidiary Sempra Infrastructure has signed an agreement with US-based oil and gas producer ConocoPhillips to supply liquefied natural gas (LNG) to the latter from Phase 1 of the planned Port Arthur LNG project in Jefferson County, Texas, US.
Under the 20-year sale and purchase agreement (SPA), Sempra Infrastructure will deliver five million tonnes per annum (Mtpa) of LNG to ConocoPhillips.
Sempra and ConocoPhillips also signed an equity sale and purchase agreement whereby ConocoPhillips will purchase a stake of 30% in the Port Arthur LNG Phase 1 project, which is expected to have a production capacity of approximately 13.5Mtpa.
The two firms also signed a natural gas supply management agreement, which will see ConocoPhillips manage the feedgas supply for first phase of the liquefaction facility.
Sempra chairman and CEO Jeffrey W Martin said: “Together, we have a shared view of the role this facility can play in supporting global economies, with energy supplies that advance both energy security and environmental goals.”
ConocoPhillips chairman and CEO Ryan Lance said: “We are excited to partner with Sempra, and our participation in the Port Arthur LNG project will further enhance our portfolio as we continue to respond to global demand for reliable supply of natural gas.”
Sempra Infrastructure plans to make a final investment decision (FID) for Phase 1 of the proposed liquefaction facility in the first quarter of 2023.
Phase 1 of the Port Arthur LNG project will include two natural gas liquefaction trains and LNG storage tanks, in addition to associated facilities.
