Sempra and ConocoPhillips Extend LNG Partnership with Port Arthur Expansion

Sempra and ConocoPhillips have extended their partnership with a 20-year offtake agreement for 4 million tonnes per annum of LNG for Port Arthur LNG Phase 2. The project will double the facility's total capacity from 13 million tonnes per annum to 26 million tonnes per annum. All major permits have been secured, with completion expected by 2028 for Phase 1.

Sempra (NYSE: SRE) and ConocoPhillips (NYSE: COP) have announced a significant expansion of their partnership with a 20-year offtake agreement for 4 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) from the Port Arthur LNG Phase 2 development project in Texas. This agreement, which was signed on August 21, 2025, will double the facility's total capacity from 13 Mtpa to 26 Mtpa [1].

The Port Arthur LNG Phase 2 project will add two new liquefaction trains, increasing the facility's total capacity. The project has secured all major permits, including FERC approval and DOE export authorization. Sempra Infrastructure has also signed a separate 20-year SPA with JERA Co. Inc. for 1.5 Mtpa of LNG offtake [1].

The 20-year LNG deal with ConocoPhillips represents nearly 31% of Phase 2's expected 13 Mtpa capacity, marking substantial progress toward making the project commercially viable. When combined with the recently announced 1.5 Mtpa agreement with JERA Co., Sempra has now secured commitments for 5.5 Mtpa of Phase 2's capacity, representing approximately 42% of the total [1].

The regulatory pathway is fully cleared, with Sempra having obtained FERC approval in September 2023 and DOE export authorization in May 2025. Bechtel has been selected for engineering and construction, and all major permits have been secured. The primary remaining hurdle is the final investment decision, targeted for 2025 [1].

Once completed, the full Port Arthur facility (Phases 1 and 2) will have a combined capacity of 26 Mtpa, positioning it as a major player in the growing global LNG market. The phased development approach is strategically sound, allowing Sempra to scale operations while managing capital deployment more effectively [1].

This agreement strengthens Sempra's LNG portfolio at a time when global demand for U.S. LNG continues to grow, particularly from allies seeking energy security. For ConocoPhillips, it expands their global LNG trading capabilities and secures long-term access to export capacity without requiring the full capital commitment of developing their own facility [1].

References:
[1] https://www.stocktitan.net/news/SRE/sempra-and-conoco-phillips-extend-partnership-with-offtake-agreement-c7q5qlvw35sz.html
[2] https://www.sempra.com/newsroom/press-releases/sempra-and-conocophillips-extend-partnership-offtake-agreement-port-arthur