ConocoPhillips will purchase LNG from Sempra Port Arthur Phase 2 Project

ConocoPhillips, a U.S. oil-and-gas producer, announced on Thursday that it will secure 4 million tonnes of liquefied gas per year from Sempra’s Port Arthur LNG phase 2 project in Texas for key global markets.

The commercial activity in the U.S. liquefied gas sector has increased since President Donald Trump lifted his moratorium on new export permits for liquefied natural gases shortly after taking office.

ConocoPhillips said it would buy LNG for a period of 20 years on a "free-on-board" basis.

According to the U.S. Energy Information Administration, the United States is currently the largest LNG exporter in the world. Its total capacity is expected to be 115 million metric tonnes per year this year.

Sempra CEO Jeffrey Martin said that the role of U.S. LNG continues to increase in meeting energy security needs for America's allies.

He said that the expansion will connect American producers to global markets and support economic growth in the United States.

Sempra Port Arthur Phase 2 won U.S.

Approval

Export of LNG to Europe and Asia in May

ConocoPhillips CEO Ryan Lance stated that the new contract is a step forward in the global LNG strategy of the company by creating a "flexible, reliable and LNG supply network", to meet the rising demand.

ConocoPhillips will be a major player in 2022.

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A 20-year contract for the offtake of 5 MTPA LNG was signed. An agreement was also executed to buy a 30% stake in Port Arthur LNG Phase 1, which is expected start operating in 2027.

The final investment decision for Phase 2 will be made later this year. (Reporting and editing by Pooja Deai in Bengaluru, with Pooja Menon reporting from Bengaluru)

(source: Reuters)