ConocoPhillips Secures 20-Year LNG Deal with Sempra's Port Arthur

ConocoPhillips has signed a 20-year LNG deal with Sempra Infrastructure to purchase 4 million tons per annum of LNG from Sempra's Port Arthur LNG Phase 2 project in Texas. The deal strengthens ConocoPhillips' position in the global LNG market and positions the company to meet rising demand while reinforcing energy security. The U.S. is expected to reach 115 million metric tons per annum of export capacity by 2025, with U.S. LNG playing a vital role in meeting energy security requirements of America's allies.

ConocoPhillips (NYSE: COP) has signed a 20-year sale and purchase agreement (SPA) with Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE), to purchase 4 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) from the Port Arthur LNG Phase 2 project in Jefferson County, Texas. The agreement, announced on August 21, 2025, extends ConocoPhillips' partnership with Sempra, which began with the Port Arthur LNG Phase 1 project.

The Port Arthur LNG Phase 2 project, currently in the development stage, is expected to include two liquefaction trains capable of producing approximately 13 Mtpa of LNG, increasing the total liquefaction capacity of the facility to up to 26 Mtpa. The project is strategically positioned to meet growing energy demand and reinforce energy security, particularly for America's allies. The U.S. is expected to reach 115 million metric tons per annum of export capacity by 2025, with U.S. LNG playing a vital role in meeting energy security requirements [1].

Jeffrey W. Martin, chairman and CEO of Sempra, expressed excitement about the extension of the partnership, stating, "The role of U.S. LNG in meeting the energy security needs of America's allies continues to grow. That is why we are excited to extend our partnership with ConocoPhillips to expand the Port Arthur LNG facility" [1]. Ryan Lance, chairman and chief executive officer of ConocoPhillips, added, "This SPA advances our global LNG portfolio strategy as we build a flexible and reliable LNG supply network to meet growing energy demand" [1].

The agreement is part of Sempra's ongoing efforts to drive future growth and deliver long-term value to shareholders. The company has made significant progress in securing permits and selecting Bechtel to deliver the engineering, procurement, and construction of the Phase 2 facility. However, the project remains subject to various risks and uncertainties, including completing commercial agreements, securing necessary permits, obtaining financing, and reaching a final investment decision [1].

References:
[1] https://www.sempra.com/newsroom/press-releases/sempra-and-conocophillips-extend-partnership-offtake-agreement-port-arthur