Sempra’s subsidiary Sempra Infrastructure and ConocoPhillips have executed a 20-year Sale and Purchase Agreement (SPA) for 5 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) from Phase 1 of the proposed Port Arthur LNG project under development in Jefferson County, Texas.
The parties have also entered into an equity sale and purchase agreement whereby ConocoPhillips will acquire 30% of the equity in Phase 1 of Port Arthur LNG, and a natural gas supply management agreement whereby ConocoPhillips will manage the feedgas supply requirements for Phase 1 of the proposed liquefaction facility.
"At Sempra, we certainly believe that great projects are the result of great partnerships," said Jeffrey W. Martin, chairman and chief executive officer of Sempra. "That is why we are excited to announce a broad strategic relationship with ConocoPhillips, which has a growing global footprint across the LNG value chain. Together, we have a shared view of the role this facility can play in supporting global economies with energy supplies that advance both energy security and environmental goals."
"We are excited to partner with Sempra, and our participation in the Port Arthur LNG project will further enhance our portfolio as we continue to respond to global demand for a reliable supply of natural gas," said Ryan Lance, chairman and chief executive officer of ConocoPhillips. "Sempra has a demonstrated track record of success and shares our commitment to a lower-carbon future."
Phase 1 of the Liquefaction Project
Sempra Infrastructure recently announced it is expecting to make a final investment decision (FID) for Phase 1 of the liquefaction project in the first quarter of 2023. Additionally, the company announced last month that it had finalized an engineering, procurement and construction (EPC) contract with Bechtel Energy for Phase 1.
Under the terms of the EPC contract, Bechtel will perform the detailed engineering, procurement, construction, commissioning, startup, performance testing and operator training activities.
The Port Arthur LNG Phase 1 project is permitted and expected to include two natural gas liquefaction trains and LNG storage tanks, and associated facilities capable of producing, under optimal conditions, up to approximately 13.5 Mtpa of LNG. A similarly sized Port Arthur LNG Phase 2 project is also competitively positioned and under active marketing and development.
Development of Phase 1 and Phase 2 of the Port Arthur LNG project is contingent on completing the required commercial agreements, securing all necessary permits, obtaining financing, and reaching an affirmative final investment decision, among other factors.
Sempra also signed an agreement with Silicon Valley Power for the long-term supply of renewable energy to the City of Santa Clara, California.
This is from the proposed Cimarrón wind project, Sempra Infrastructure's cross-border wind generation facility under development in Baja California, Mexico.