Oil and gas business ConocoPhillips has signed a sale and purchase agreement to acquire 30% of the equity in Phase 1 of the Port Arthur LNG project under development in Jefferson County, Texas.
The LNG deal is with oil and gas infrastructure company Sempra and was signed in conjunction with a 20-year sale and purchase agreement between the parties, through which ConocoPhillips will purchase five million tonnes per annum of LNG from Sempra from the site.
Once complete, the Port Arthur LNG project is expected to feature two liquefaction trains and LNG storage tanks, and associated facilities that can produce up to 13.5 million tonnes per annum of LNG.
Sempra recently said that the final investments for Phase 1 of the liquefaction project should be wrapped up in the first quarter of 2023.
Ryan Lance, Chairman and CEO of ConocoPhillips, 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 used to be primarily a utility company called Sempra Energy, but it divested the utility business in 2021 and rebranded to Sempra, to better reflect its now-core focus on providing infrastructure that delivers energy. Earlier this year its Sempra Infrastructure subsidiary announced a series of agreements with European energy companies for US LNG to help displace reliance on Russian gas.