ConocoPhillips has executed a 20-year Sale and Purchase Agreement to buy more than 5 million tonnes per annum (Mtpa) of liquified natural gas from Sempra Infrastructure’s Port Arthur LNG project in Southeast Texas.
California-based Sempra Infrastructure, a subsidiary of Sempra, and ConocoPhillips announced the companies are moving forward with the plans they originally announced in July.
“We are excited to partner with Sempra, and our participation in the Port Arthur LNG will further enhance our portfolio as we continue to respond to global demand for reliable supply of natural gas,” Ryan Lance, chairman and CEO of ConocoPhillips, said on Tuesday in a news release. “Sempra has a demonstrated track record and shares our commitment to a lower-carbon future.”
The Texas oil company will acquire 30 percent equity in phase 1 of the project, and it will manage the feedgas supply requirements for the proposed facility, the company said.
Phase 1 of the Port Arthur LNG project is expected to include up to two natural gas liquefaction trains capable of producing up to 13.5 Mtpa of LNG.
“At Sempra, we certainly believe that great projects are the result of partnerships,” CEO Jeffrey W. Martin, Sempra chairman and CEO, said in a news release. “That is why we are excited to announce a broad strategic partnership, which has a growing global footprint across the LNG value chain.
“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,” he continued.
Development of the projects is contingent on completing the required agreements, securing all necessary permits, obtaining financing, and reaching an affirmative final investment deal, among others, Sempra said.
Last month, Sempra amended its engineering, procurement, and construction contract for Phase 1 with Bechtel Energy. The contract is valued at $10.5 billion.
“We are delighted to continue our partnership with Sempra Infrastructure to deliver cleaner and more affordable energy to communities around the world,” Bechtel Energy President Paul Marsden said in October.
“Alongside Sempra Infrastructure, Bechtel is ready to continue active construction in the Gulf Coast and bring more opportunities to the local region,” he added.
Port Arthur LNG Phase 2, a similarly-sized project, is competitively positioned and under active marketing and development.
Sempra said it expects to make a final investment decision on Port Arthur LNG Phase 1 in early 2023.
