Sempra and ConocoPhillips sign offtake agreement for Port Arthur LNG Phase 2

“The role of US LNG in meeting the energy security needs of America's allies continues to grow,” said Jeffrey W. Martin, Chairman and CEO of Sempra. “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.”

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

Sempra Infrastructure and ConocoPhillips initiated their strategic alliance with the Port Arthur LNG Phase 1 project, where ConocoPhillips holds a 30% equity stake and has secured 5 million tpy in offtake capacity for 20 years. 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.

Similarly, the Port Arthur LNG Phase 2 development project is expected to include two liquefaction trains capable of producing approximately 13 million tpy of LNG, increasing the total liquefaction capacity of the Port Arthur LNG facility from approximately 13 million tpy for Phase 1 to up to approximately 26 million tpy. Future phases of Port Arthur LNG are also in the early development stage.

The Port Arthur LNG Phase 2 development project is strategically positioned and continues to attract strong interest. In July 2025, Sempra Infrastructure entered into a definitive 20-year SPA with JERA Co. Inc. for 1.5 million tpy of LNG offtake on a free-on-board basis from the proposed project, subject to making a positive final investment decision and customary closing conditions.

There has also been notable progress in permitting. In September 2023, the Federal Energy Regulatory Commission granted project approval, followed by an export authorisation from the U.S. Department of Energy in May 2025, allowing LNG exports to countries without a free-trade agreement with the US. All major permits for the Phase 2 development project have been secured.

Further advancing the project, Sempra Infrastructure previously announced that Bechtel had been selected to deliver the EPC of the Port Arthur LNG Phase 2 facility.

The development of the Port Arthur LNG Phase 2 project 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. With momentum in the project's development, Sempra continues to target making a financial investment decision on Phase 2 in 2025.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/22082025/sempra-and-conocophillips-sign-offtake-agreement-for-port-arthur-lng-phase-2/