ConocoPhillips signed an agreement to become a major offtaker from Sempra’s Port Arthur LNG Phase 2 project.
The operator has signed a 20-year deal to purchase 4 million tonnes /year (tpy) of LNG on a free-on-board basis from the project currently under development in Jefferson County, Tex., by Sempra Infrastructure.
In July 2022, ConocoPhillips signed a 20-year agreement for 5 million tpy of LNG offtake and executed an agreement to purchase 30% equity stake in the 13.5-million tpy Phase 1 of Port Arthur LNG. The project’s first phase, which consists of two LNG storage tanks and liquefaction trains 1 and 2, is under construction, with commercial operations expected to begin in 2027.
Port Arthur LNG Phase 2, also expected to include two liquefaction trains capable of producing about 13 million tpy, would increase the total liquefaction capacity of the Port Arthur LNG plant to up to about 26 million tpy.
ConocoPhillips said that although a final investment decision (FID) is pending for Phase 2, the company’s participation in that project will be offtake only. Sempra is targeting Phase two FID this year.
Future phases of Port Arthur LNG are in the early development stage.
