Sempra and EQT Sign 20-Year LNG Supply Deal for Port Arthur Phase 2

Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE), and EQT Corporation (NYSE: EQT) announced a long-term sales and purchase agreement (SPA) that will see EQT offtake 2 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) from Sempra’s proposed Port Arthur LNG Phase 2 project in Jefferson County, Texas.

Under the 20-year deal, LNG will be sold on a free-on-board basis at prices indexed to Henry Hub. The agreement reinforces EQT’s strategy of linking Appalachian gas supplies to global markets while boosting Sempra’s commercial progress on its Port Arthur expansion.

The deal follows two other major agreements secured this summer: a 1.5 Mtpa offtake contract with Japan’s JERA Co., Inc. in July and a 4 Mtpa deal with ConocoPhillips earlier in August. Together, these agreements mark strong momentum toward a final investment decision (FID) on Port Arthur LNG Phase 2, which Sempra is targeting in 2025.

Phase 2 would add two new liquefaction trains with 13 Mtpa of capacity, doubling Port Arthur’s output from 13 Mtpa under Phase 1 to a total of up to 26 Mtpa. Phase 1 is currently under construction, with first train operations expected in 2027 and the second in 2028. Engineering and construction for Phase 2 is slated to be delivered by Bechtel.

The Port Arthur LNG project has already secured full regulatory clearance, including Federal Energy Regulatory Commission (FERC) approval in 2023 and U.S. Department of Energy authorization in May 2025 for non-FTA exports.

Commenting on the agreement, Sempra Infrastructure CEO Justin Bird said the project underscores U.S. LNG’s role in strengthening energy security and economic growth. EQT CEO Toby Rice framed the deal as part of the company’s ambition to position U.S. LNG at the center of global energy supply and lower-carbon solutions.

The agreement also highlights a broader industry trend: U.S. LNG developers are moving quickly to lock in long-term offtake contracts as European and Asian buyers seek secure supplies amid volatile global markets. With Port Arthur Phase 2 advancing and future phases already under early development, Sempra is positioning itself as a major player in the next wave of U.S. LNG capacity expansion.

While the SPA is a significant milestone, the project’s execution still depends on completing commercial agreements, financing, and a positive FID. If realized, Port Arthur LNG could become one of the largest U.S. LNG export hubs, strengthening America’s role in global gas trade and providing Appalachian producers like EQT with a long-sought outlet to international markets.

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