ConocoPhillips signs deal with Sempra for 5 Mt/year of LNG (US)
The US company ConocoPhillips has signed a 20-year agreement with the US energy infrastructure group Sempra to purchase 5 Mt/year (6.9 bcm/year) of LNG from the 13.5 Mt/year (18.6 bcm/year) Port Arthur LNG project, located in the US state of Texas. The contract is worth approximately US$10.5bn.
In addition, the two companies have entered into an equity sale and purchase agreement in which ConocoPhillips will acquire 30% of the equity in the first phase of the project. ConocoPhillips and Sempra Infrastructure also signed a natural gas supply management agreement in which ConocoPhillips will manage the feedgas supply requirements for Phase 1 of the proposed liquefaction facility. These deals follow a non-binding agreement the two companies signed in July 2022.
The first phase of the Port Arthur LNG project will consist of two liquefaction trains each capable of producing up to 6.75 Mt/year. Sempra is planning to take a final investment decision (FID) for the first phase of the project in the first quarter of 2023. The company also plans a similarly sized second phase of the project.
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