Sempra, ConocoPhillips sign LNG deal
Sempra Infrastructure, a unit of New York-listed Sempra, and ConocoPhillips have executed a 20-year sale and purchase agreement (SPA) for 5mn metric tons/year of LNG from Phase 1 of the proposed Port Arthur LNG project in Jefferson County, Texas, Sempra said on November 22.
The parties have also entered into an equity sale and purchase agreement whereby ConocoPhillips will acquire 30% of the equity in Phase 1 of Port Arthur LNG and a natural gas supply management agreement whereby ConocoPhillips 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 (FID) for Phase 1 of the liquefaction project in the first quarter of 2023. Additionally, the company announced last month that it had finalised 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, startup, 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 up to approximately 13.5mn mt/yr of LNG. A similarly sized Port Arthur LNG Phase 2 project is also competitively positioned and under active marketing and development.