ConocoPhillips has agreed to acquire a 30% stake in Phase 1 of the Port Arthur LNG project in the US from Sempra Infrastructure.
As per the heads of agreement (HOA), ConocoPhillips will purchase five million tonnes per annum (Mtpa) of liquefied natural gas (LNG) produced by the project in its first phase.
ConocoPhillips could supply natural gas supply services to the LNG facility for its share of output.
The company will also have an option to purchase an additional stake and certain LNG offtake in Phase II of the Port Arthur LNG project.
ConocoPhillips chairman and CEO Ryan Lance said: “The decision to enter into this agreement with Sempra provides us with a ground-floor opportunity to participate in premier LNG developments, reinforcing our commitment to helping solve the world’s energy supply needs as we transition to a lower-carbon future.
“Sempra brings a long history of successful LNG project development, and we look forward to working together to provide reliable LNG to support the energy transition and strengthen US and global energy security.”
ConocoPhillips and Sempra have agreed to assess the development of low-carbon projects, including a carbon capture and storage project for the Port Arthur LNG project.
ConocoPhillips will also have the option to buy offtake and a stake in Sempra Infrastructure’s Energia Costa Azul LNG phase 2 project, which is planned to be developed in Baja California, Mexico.
The deal also provides an opportunity for Sempra Infrastructure to take part in ConocoPhillips’ carbon capture and sequestration projects in Texas or Louisiana, pertaining to the Port Arthur LNG project.
Sempra chairman and CEO Jeffrey Martin said: “At Sempra, we believe bold new partnerships will be central to solving the world’s energy security and decarbonisation challenges.
“That is why we are excited to announce this proposed partnership with ConocoPhillips, a leading global energy producer that also shares our vision of responsibly developing and delivering cleaner energy resources.”
The Port Arthur LNG is a proposed natural gas liquefaction and export terminal in Jefferson County in southeast Texas.
Planned to be built in two phases, the Port Arthur LNG project will have an LNG export capacity of up to 27Mtpa.
Last month, ConocoPhillips announced that it had signed a partnership agreement with QatarEnergy for the North Field East (NFE) expansion project.