ConocoPhillips signed a term SPA to purchase 4 million tonnes a year (MMtpa) of liquefied natural gas (LNG) from Sempra Infrastructure's upcoming Port Arthur LNG Phase 2 project.
ConocoPhillips, under the agreement, will be provided with 20-year free-on-board LNG as an attempt to allow the company to benefit from its ability to supply natural gas to customers in global big markets on a regular basis.
"ConocoPhillips is delighted to be taking our joint venture with Sempra Infrastructure to Port Arthur LNG Phase 2, where we'll be a material offtaker," ConocoPhillips chairman and CEO Ryan Lance said. "This SPA is another part of the puzzle in our global LNG strategy to create a diversified and flexible LNG supply chain to support growing energy demand."
"The future looks good for America's energy prospects for the capability of U.S. LNG to support America's allies' energy security," Sempra Chairman and CEO Jeffrey W. Martin said. "That's why we're looking forward to capitalizing on this opportunity with our joint venture with ConocoPhillips to develop the Port Arthur LNG facility.". This is the shared vision of both firms for the future of the American natural gas producers to be injected into the new world markets, and to bring economic prosperity and jobs here in the US.
ConocoPhillips, in July 2022, finalized a 20-year offtake of 5 MMtpa of LNG and 30% equity stake in Phase 1 of the Port Arthur LNG from 2027. Phase 2 is to be decided upon final investment, but company participation in the project will be offtake only.