US giant fortifies its LNG arsenal with 20-year offtake from Gulf Coast project

Sempra Infrastructure, a subsidiary of North America’s energy infrastructure company Sempra, has won a multi-year sale and purchase agreement (SPA) with ConocoPhillips, a U.S.-headquartered energy giant, for the supply of liquefied natural gas (LNG) from the second phase of its LNG export terminal under development in Port Arthur, Southeast Texas, United States.

Following a 20-year deal with JERA, Sempra Infrastructure has signed another 20-year SPA with ConocoPhillips for 4 million tonnes per annum (mtpa) of LNG on a free-on-board basis from the Port Arthur LNG Phase 2 project under development in Jefferson County, Texas. This is said to support ConocoPhillips’ ability to deliver natural gas to customers in key global markets.

Ryan Lance, Chairman and Chief Executive Officer of ConocoPhillips, commented: “ConocoPhillips is pleased to extend our partnership with Sempra Infrastructure to Port Arthur LNG Phase 2, where we will be a major offtaker. This SPA advances our global LNG portfolio strategy as we build a flexible and reliable LNG supply network to meet growing energy demand.”

Previously, the U.S. energy giant signed a 20-year agreement for 5 mtpa of LNG offtake and executed a deal to purchase a 30% equity stake in Phase 1 of Port Arthur LNG, which is expected to come online in 2027. Even though a final investment decision (FID) is pending for Phase 2, ConocoPhillips’ participation in the project will be limited to just offtake.

Jeffrey W. Martin, Chairman and CEO of Sempra, remarked: “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.

“This next phase reflects both companies’ shared view of the opportunity to connect American producers of natural gas with growing markets overseas, while also driving economic growth and job creation here at home.”

Port Arthur LNG Phase 1, currently under construction, consists of two LNG storage tanks and liquefaction trains 1 and 2, which are expected to achieve commercial operations in 2027 and 2028, respectively.

The Port Arthur LNG Phase 2 development project is expected to include two liquefaction trains capable of producing approximately 13 mtpa of LNG, increasing the total liquefaction capacity of the Port Arthur LNG facility from approximately 13 mtpa for Phase 1 to up to 26 mtpa.

Sempra, which claims that future phases of Port Arthur LNG are also in the early development stage, has highlighted notable progress in permitting, with the Federal Energy Regulatory Commission granting project approval in 2023, followed by an export authorization from the U.S. Department of Energy in May 2025, allowing LNG exports to countries without a free-trade agreement with the United States.

With all major permits for the Phase 2 development project secured, Bechtel was selected to deliver the engineering, procurement, and construction of the Port Arthur LNG Phase 2 facility, which remains subject to various risks and uncertainties, including completing the required commercial agreements, securing and/or maintaining all necessary permits, obtaining financing and reaching a final investment decision, among other factors.

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