ConocoPhillips to purchase 4M tons per annum of LNG

ConocoPhillips (COP) announced it has signed a long-term sales and purchase agreement to purchase 4M tons per annum of liquefied natural gas from the Port Arthur LNG Phase 2 project under development by Sempra Infrastructure, a subsidiary of Sempra (SRE), in Jefferson County, Texas. Under the agreement, ConocoPhillips will offtake LNG over a 20-year term on a free-on-board basis, supporting the company’s ability to reliably deliver natural gas to customers in key global markets. In July 2022, ConocoPhillips signed a 20-year agreement for 5 MTPA of LNG offtake and executed an agreement to purchase 30% equity stake in Phase 1 of Port Arthur LNG, which is expected to start up in 2027. Although final investment decision is pending for Phase 2, the company’s participation in that project will be offtake only.