Sempra, ConocoPhillips enter 20-year Port Arthur LNG agreement

Nov. 23, 2022
Sempra Infrastructure has executed a 20-year agreement to sell ConocoPhillips 5 million tonnes/year of LNG from the 13.5-million tpy Phase 1 of Sempra’s proposed Port Arthur LNG plant under development in Jefferson County, Tex.

Sempra subsidiary Sempra Infrastructure has executed a 20-year agreement to sell ConocoPhillips Co. 5 million tonnes/year of LNG from the 13.5-million tonne/year (tpy) Phase 1 of Sempra’s proposed Port Arthur LNG plant under development in Jefferson County, Tex. ConocoPhillips will also acquire 30% of Port Arthur LNG Phase 1 and manage its feedgas supply requirements.

Sempra Infrastructure expects to make a final investment decision (FID) for Phase 1 in first-quarter 2023 (OGJ Online, Nov. 8, 2022) and last month finalized an engineering, procurement, and construction (EPC) contract with Bechtel Energy Inc. for Phase 1. Bechtel will perform the detailed EPC as well as commissioning, startup, performance testing, and operator training.

Port Arthur LNG Phase 1 is permitted and expected to include two 6.75-million tpy liquefaction trains and LNG storage tanks. A similarly sized Port Arthur LNG Phase 2 project is under active marketing and development.

Development of Phase 1 and Phase 2 of the Port Arthur LNG project is contingent on completing required commercial agreements, securing all necessary permits, obtaining financing, and reaching an FID, among other factors.