The deal involves 2 million tonnes per annum of LNG and is the latest in a series of key partnerships for the major energy development in Texas.
Sempra Infrastructure, a subsidiary of Sempra, and EQT Corporation have announced a definitive 20-year sales and purchase agreement (SPA) for the supply of 2 million tonnes per annum (Mtpa) of liquefied natural gas (LNG). This long-term deal is tied to the Port Arthur LNG Phase 2 development project in Jefferson County, Texas, and marks a significant step forward for one of the nation's largest energy infrastructure projects.
Under the terms of the SPA, EQT will purchase the LNG on a free-on-board (FOB) basis, with the price indexed to the Henry Hub natural gas benchmark. This agreement highlights the continued strategic importance of U.S. natural gas in meeting global energy demands.
The Port Arthur LNG Phase 2 project, which has secured all major permits including approval from the Federal Energy Regulatory Commission and export authorization from the U.S. Department of Energy, is targeting a final investment decision (FID) in 2025. This latest agreement with EQT builds on a series of recent commercial successes for the project. In July, Sempra Infrastructure signed a 20-year SPA with JERA Co., Inc. for 1.5 Mtpa of LNG, and earlier this month, the company expanded its partnership with ConocoPhillips with a 20-year SPA for 4 Mtpa of LNG.
"Advancing the Port Arthur LNG Phase 2 project with EQT reflects our mutual commitment to helping ensure U.S. natural gas projects continue to support local economic development and provide global markets with a stable, long-term supply of LNG," said Justin Bird, CEO of Sempra Infrastructure.
This sentiment was echoed by EQT’s president and CEO, Toby Z. Rice, who stated, "This agreement underscores EQT's role in unleashing U.S. LNG that enhance global energy security while driving progress toward lower-carbon solutions."
The Port Arthur LNG facility, once fully developed, is poised to become a cornerstone of American energy exports. Phase 1 of the project is currently under construction and is expected to become commercially operational in 2027 and 2028. The proposed Phase 2 is expected to add two more liquefaction trains capable of producing approximately 13 Mtpa of LNG, which would double the total liquefaction capacity of the facility to up to 26 Mtpa.
Sempra Infrastructure has also previously announced that Bechtel has been selected as the engineering, procurement, and construction (EPC) contractor for the Phase 2 facility.
