ConocoPhillips signs 20-year LNG deal for 4 million tonnes annually

ConocoPhillips (NYSE: COP) signed a long-term sales and purchase agreement to buy 4 million tonnes per annum of liquefied natural gas from Sempra Infrastructure's Port Arthur LNG Phase 2 project in Jefferson County, Texas.

The 20-year agreement allows ConocoPhillips to purchase LNG on a free-on-board basis from the facility under development by Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE). The arrangement supports ConocoPhillips' ability to deliver natural gas to global markets.

"This SPA advances our global LNG portfolio strategy as we build a flexible and reliable LNG supply network to meet growing energy demand," said Ryan Lance, chairman and chief executive officer of ConocoPhillips.

Jeffrey W. Martin, chairman and CEO of Sempra, stated that the agreement reflects both companies' view of connecting American natural gas producers with overseas markets while driving economic growth and job creation domestically.

ConocoPhillips previously established a relationship with the Port Arthur LNG facility in July 2022, signing a 20-year agreement for 5 million tonnes per annum of LNG offtake from Phase 1 and purchasing a 30% equity stake in that phase. Phase 1 is expected to begin operations in 2027.

The Phase 2 project awaits a final investment decision. Unlike Phase 1, ConocoPhillips will participate in Phase 2 through offtake agreements only, without taking an equity position in the project.

The information is based on a company press release.

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