Sempra announced that its subsidiary, Sempra Infrastructure, and ConocoPhillips have 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 Phase 2 development project in Jefferson County, Texas, 90 miles east of Houston.
"The role of U.S. 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."
"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."
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. Port Arthur LNG Phase 1, currently under construction, consists of two LNG storage tanks and liquefaction trains 1 and 2, which are expected to achieve commercial operations in 2027 and 2028, respectively.
Similarly, the Port Arthur LNG Phase 2 development project is expected to include two liquefaction trains capable of producing approximately 13 Mtpa of LNG, increasing the total liquefaction capacity of the Port Arthur LNG facility from approximately 13 Mtpa for Phase 1 to up to approximately 26 Mtpa. Future phases of Port Arthur LNG are also in the early development stage.
The Port Arthur LNG Phase 2 development project is strategically positioned and continues to attract strong interest. In July 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 basis from the proposed project, subject to making a positive final investment decision and customary closing conditions.
There has also been notable progress in permitting. In September 2023, the Federal Energy Regulatory Commission granted project approval, followed by an export authorization from the U.S. Department of Energy in May 2025, allowing LNG exports to countries without a free-trade agreement with the United States. 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 of the Port Arthur LNG Phase 2 facility.
The development of the Port Arthur LNG 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 final investment decision, among other factors. With momentum in the project's development, Sempra continues to target making a financial investment decision on Phase 2 in 2025.
Finally, the announcement is another example of Sempra's execution and steady progress on its five 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.
