ConocoPhillips Doubles Port Arthur LNG Offtake With 20-Year 4-MTPA Deal

ConocoPhillips has signed a 20-year agreement to purchase 4 million metric tons per annum of liquefied natural gas from the planned Phase 2 expansion of Sempra’s Port Arthur LNG project in Texas. The offtake will be supplied on a free-on-board basis once the second phase enters service. The new commitment nearly doubles ConocoPhillips’ existing 5 million-ton annual purchase from Port Arthur’s first phase, which is under construction and slated to begin operations in 2027. Taken together, the energy producer now has rights to 9 million tons a year, making it the largest single customer of the Gulf Coast export facility. ConocoPhillips already holds a 30 percent equity stake in Phase 1 but said its participation in Phase 2 will be limited to the supply contract. Sempra is pursuing a final investment decision on the expansion after recently securing a U.S. export permit, and it continues to line up additional long-term buyers to underpin financing.