Sempra Infrastructure and ConocoPhillips entered into LNG purchase agreement

Sempra Infrastructure and ConocoPhillips have executed a 20-year sale and purchase agreement for 5m tonnes per annum (Mtpa) of liquefied natural gas (LNG) from Phase 1 of Sempra Infrastructure’s proposed Port Arthur LNG project in Jefferson County, Texas.

The two companies have signed two more agreements through which ConocoPhillips will acquire 30% of the equity in Phase 1 of Port Arthur LNG and will manage the feed gas supply requirements for Phase 1 of the proposed liquefaction facility.

Sempra Infrastructure recently announced it is expecting to make a final investment decision for Phase 1 of the project in the first quarter of 2023. The company last month also announced that it had finalized an engineering, procurement and construction (EPC) contract with Bechtel Energy for Phase 1. Under the terms of the EPC contract, Bechtel will perform the detailed engineering, procurement, construction, commissioning, start-up, performance testing and operator training activities.

The Port Arthur LNG Phase 1 project is permitted and expected to include two natural gas liquefaction trains and LNG storage tanks, and associated facilities capable of producing, under optimal conditions, up to approximately 13.5 Mtpa of LNG. A similarly sized Port Arthur LNG Phase 2 project is under active marketing and development.

Development of Phase 1 and Phase 2 of the project is contingent on completing the required commercial agreements, securing all necessary permits, obtaining financing and reaching an affirmative final investment decision, among other factors.

In October, the US Federal Energy Regulatory Commission (FERC) approved a request from Sempra Infrastructure for an extension to complete construction of the plant and pipelines. The extension gives the company more than an extra four years, moving the deadline from April 2024 to June 2028.