Sempra Infrastructure, a subsidiary of Sempra, is developing a new large-scale LNG facility in Jefferson County, Texas, that could expand ConocoPhillips‘ global LNG business.
In accordance with the Heads of Agreement (HOA) with Sempra, ConocoPhillips is to acquire a 30% equity stake in Port Arthur Liquefaction Holdings, LLC and to acquire the ability to offtake approximately 5 million tonnes of LNG per annum (Mtpa) from the Port Arthur LNG project.
This project has been fully permitted, and the first phase will include two liquefaction trains, LNG storage tanks, along with associated facilities capable of producing approximately 13.5 Mtpa of LNG under optimal conditions. ConocoPhillips will bring extensive commercial expertise and resources to the project as one of the top five natural gas marketers in North America.
As part of the Port Arthur LNG project, Sempra Infrastructure will also evaluate low-carbon projects, including a carbon capture and storage (CCS) project, and ConocoPhillips will develop carbon capture and sequestration projects in Texas or Louisiana.
Among other things, the parties must sign engineering and construction contracts, obtain financing, and reach an investment decision before the Port Arthur LNG project can proceed. The mentioned HOA is a preliminary, non-binding arrangement.
Global greenhouse gas emissions can be significantly reduced through the use of natural gas instead of coal and refined products. As part of its global LNG portfolio, ConocoPhillips will leverage its strengths in natural gas marketing, trading, and emissions reduction projects.