ConocoPhillips signs 20-year LNG purchase agreement with Sempra

Global exploration and production company ConocoPhillips has signed a 20-year sales and purchase agreement (SPA) with Sempra Infrastructure on a free-on-board basis.

This long-term agreement, for four million tonnes per annum (mtpa) of liquefied natural gas (LNG) from the Port Arthur LNG Phase 2 project in the US, will bolster ConocoPhillips' ability to deliver natural gas to global markets.

Sempra CEO and chairman Jeffrey W. Martin said: “The role of US LNG in meeting the energy security needs of America’s allies continues to grow.

“That is why we are excited to extend our partnership with ConocoPhillips to expand the Port Arthur LNG facility. This next phase reflects both companies’ shared view of the opportunity to connect American producers of natural gas with growing markets overseas, while also driving economic growth and job creation here at home.”

The Port Arthur LNG Phase 2 project is under development by Sempra’s subsidiary, Sempra Infrastructure, in Jefferson County, Texas.

ConocoPhillips CEO and chairman Ryan Lance said: “ConocoPhillips is pleased to extend our partnership with Sempra Infrastructure to Port Arthur LNG Phase 2, where we will be a major offtaker.

“This SPA advances our global LNG portfolio strategy as we build a flexible and reliable LNG supply network to meet growing energy demand.”

In addition to the recent SPA, ConocoPhillips had previously, in July 2022, committed to a 20-year agreement to purchase 5mtpa of LNG offtake and a 30% equity stake in phase one of Port Arthur LNG. It is scheduled for start-up in 2027.

While a final investment decision for phase two is pending, ConocoPhillips' role will be limited to offtake.

Furthermore, ConocoPhillips announced that drilling was complete at a second appraisal well at the Slagugle oil discovery in the Norwegian Sea earlier this year.

"ConocoPhillips signs 20-year LNG purchase agreement with Sempra" was originally created and published by Offshore Technology, a GlobalData owned brand.

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