SAN DIEGO, CALIFORNIA (By Sempra, 21.Aug.2025, Words: 537) — Sempra subsidiary Sempra Infrastructure, and ConocoPhillips signed a definitive 20-year sale and purchase agreement (SPA) for 4 million tonnes per annum (MTPA) of LNG offtake from the Port Arthur LNG (PALNG) Phase 2 development project in Jefferson County, Texas.
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 MTPA in offtake capacity for 20 years. PALNG Phase 1, currently under construction, consists of 2 LNG storage tanks and liquefaction trains 1 and 2, which are expected to achieve commercial operations in 2027 and 2028, respectively.
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Similarly, the PALNG Phase 2 development project is expected to include 2 liquefaction trains capable of producing 13 MTPA of LNG, increasing the total liquefaction capacity of the PALNG facility from 13 MTPA for Phase 1 to up to 26 MTPA. Future phases of PALNG are also in the early development stage.
“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.”
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“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 chief executive officer 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.”
The PALNG Phase 2 development project is strategically positioned and continues to attract strong interest. In Jul. 2025, Sempra Infrastructure entered into a definitive 20-year SPA with JERA Co. Inc. for 1.5 MTPA of LNG offtake on a free-on-board (FOB) basis from the proposed project, subject to making a positive final investment decision (FID) and customary closing conditions.
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There has also been notable progress in permitting. In Sep. 2023, the Federal Energy Regulatory Commission (FERC) granted project approval, followed by an export authorization from the US Department of Energy (DOE) 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 engineering, procurement and construction (EPC) of the PALNG Phase 2 facility.
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The development of the PALNG 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 FID, among other factors. With momentum in the project’s development, Sempra continues to target making a FID on Phase 2 in 2025.
Finally, today’s announcement is another example of Sempra’s execution and steady progress on its 5 value creation initiatives for 2025, reflecting another important step in continuing to unlock value in the LNG franchise. These efforts position Sempra to drive future growth and deliver long-term value to shareholders and enhanced benefits to consumers.
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