Wedoany.com Report-Aug. 25, Sempra Infrastructure, a subsidiary of North America’s Sempra, has signed a multi-year sale and purchase agreement (SPA) with ConocoPhillips for the supply of liquefied natural gas (LNG) from Phase 2 of its Port Arthur LNG export terminal in Southeast Texas, United States. The agreement adds to the company’s growing list of long-term contracts supporting LNG exports.

Following a previous 20-year SPA with JERA, Sempra Infrastructure entered into another 20-year SPA with ConocoPhillips for 4 million tonnes per annum (mtpa) of LNG on a free-on-board basis from the Port Arthur LNG Phase 2 project, located in Jefferson County, Texas. The agreement supports ConocoPhillips’ plan to supply LNG to global markets.

Ryan Lance, Chairman and Chief Executive Officer of ConocoPhillips, 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.”

Earlier, ConocoPhillips signed a 20-year SPA for 5 mtpa of LNG and acquired a 30% equity stake in Phase 1 of Port Arthur LNG, which is scheduled to start operations in 2027. While ConocoPhillips’ involvement in Phase 1 includes equity participation, its role in Phase 2 is limited to offtake.

Jeffrey W. Martin, Chairman and CEO of Sempra, noted: “The role of U.S. 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.”

Phase 1 of the Port Arthur LNG project, currently under construction, includes two storage tanks and two liquefaction trains, with operations planned for 2027 and 2028. Phase 2 is expected to add two more liquefaction trains with a combined capacity of about 13 mtpa, raising the facility’s overall capacity from 13 mtpa in Phase 1 to 26 mtpa after Phase 2.

Future expansions of Port Arthur LNG are under early development. Regulatory approvals have advanced, with the Federal Energy Regulatory Commission granting approval in 2023 and the U.S. Department of Energy issuing an export authorization in May 2025, enabling exports to non-free-trade-agreement countries.

Bechtel has been selected to handle the engineering, procurement, and construction of the Port Arthur LNG Phase 2 facility. The project remains subject to conditions including financing, commercial agreements, maintaining permits, and reaching a final investment decision.

This agreement reinforces both companies’ strategies to expand LNG supply infrastructure while meeting growing demand in international markets.