ConocoPhillips expands LNG portfolio with 20-year agreement for 4 MTPA from Sempra’s Port Arthur Phase 2, reinforcing global energy supply.
ConocoPhillips (NYSE: COP) has taken another major step in expanding its presence in the global liquefied natural gas (LNG) sector by signing a new long-term sales and purchase agreement (SPA) tied to the Gulf Coast. The company announced that it has entered into a deal to secure 4 million tonnes per annum (MTPA) of LNG from the proposed Port Arthur LNG Phase 2 project. The development is being advanced by Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE), and will be located in Jefferson County, Texas.
The newly signed agreement covers a 20-year term under which ConocoPhillips will offtake LNG on a free-on-board (FOB) basis. This structure ensures that the company retains flexibility in shipping and distribution, strengthening its ability to deliver LNG to a broad base of international markets where energy demand continues to rise.
Ryan Lance, chairman and chief executive officer of ConocoPhillips, emphasized the strategic importance of this agreement. “ConocoPhillips is pleased to extend our partnership with Sempra Infrastructure to Port Arthur LNG Phase 2, where we will be a major offtaker,” he said. Lance noted that the deal supports the company’s broader strategy of developing a reliable and flexible global LNG supply portfolio, aimed at meeting the evolving energy requirements of customers worldwide.
Sempra also highlighted the significance of the expanded collaboration. Jeffrey W. Martin, chairman and CEO of Sempra, stated that U.S. LNG is playing an increasingly vital role in meeting the energy security needs of American allies across the globe. He added that expanding the Port Arthur LNG project through Phase 2 demonstrates both companies’ shared vision of connecting U.S. natural gas producers with growing overseas demand. Beyond energy exports, Martin underlined that the project will also contribute to local economic growth and job creation in Texas.
This latest move builds on ConocoPhillips’ existing involvement in the Port Arthur LNG development. In July 2022, the company signed another long-term deal for 5 MTPA of LNG from Phase 1 of the same project. Alongside that offtake agreement, ConocoPhillips acquired a 30% equity stake in Phase 1, which is currently expected to begin operations in 2027. While the final investment decision for Phase 2 has not yet been taken, ConocoPhillips’ role in that stage will be limited to LNG offtake rather than direct equity participation.
Overall, the agreement further strengthens ConocoPhillips’ positioning in the global LNG market while advancing the U.S. role as a reliable supplier to international customers seeking stable and secure energy resources.
