ConocoPhillips Entered Into New Deal with Sempra on Port Arthur LNG

SEATTLE (Oil Monster): ConocoPhillips announced that it has signed a 20-year Sale and Purchase Agreement (SPA) with Sempra Infrastructure at the proposed Port Arthur liquefied natural gas (LNG) terminal in Texas, USA. The agreement is for 5 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) from Phase 1 of the project.

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Also, the two parties entered into an equity sale and purchase agreement, by which ConocoPhillips will acquire a 30% stake in the first phase of the terminal. In addition, the company has also agreed to manage the feedgas supply requirements for the initial phase, in accordance with a supply management agreement between the parties.

Jeffrey W. Martin, chairman and chief executive officer of Sempra stated that the company is excited to announce a broad strategic relationship with ConocoPhillips, which it believes, will have a growing global footprint across the LNG value chain.

Meantime, Ryan Lance, chairman and chief executive officer of ConocoPhillips too said that it is excited to partner with Sempra and that the participation in the Port Arthur LNG project will further enhance its portfolio.

A final investment decision for Phase-1 of the project is expected by Q1 2023. Also, Sempra has reportedly finalized an engineering, procurement and construction (EPC) contract with Bechtel Energy. The initial phase will have the capability to produce up to around 13.5 Mtpa of LNG.