ConocoPhillips, one of the largest US oil and gas producers, agreed to take a a 30% stake in the first phase of Sempra Energy’s proposed Port Arthur liquefied natural gas terminal in Texas.
The deal involves a 20-year sale and purchase agreement for an annual 5 million metric tons of LNG, and a natural gas supply management agreement whereby ConocoPhillips will manage feedgas supply requirements.
The accord would give ConocoPhillips a significant stake in what could be one of the next major US LNG export terminals to start construction. Boosting US export capacity is seen as crucial for Europe to replace Russian supplies of natural gas.
San Diego-based Sempra said in a statement Tuesday that it expects to make a final investment decision for Phase 1 of the project in the first quarter of 2023. The terminal, which is expected to include two gas liquefaction trains and LNG storage tanks, is designed to produce as much as 13.5 million tons of the super-chilled fuel a year.