Sempra Infrastructure, a subsidiary of the American group Sempra, has formalized the signing of a sale and purchase agreement (SPA) with ConocoPhillips for the acquisition of 4 million tonnes per annum (Mtpa) of liquefied natural gas (LNG). This contract is part of the development of the second phase of the Port Arthur LNG project, located in Jefferson County, Texas. With a duration of 20 years, the agreement reinforces the collaboration between the two groups, already partners in the project’s first phase.
Port Arthur LNG Phase 1, currently under construction, includes two liquefaction trains and two storage tanks. Commercial operations are expected to begin in 2027 and 2028. ConocoPhillips holds a 30% stake in the first phase, along with guaranteed export capacity of 5 Mtpa over twenty years. The recently signed agreement for Phase 2 thus expands the company’s access to the LNG market.
Port Arthur LNG: Doubling Liquefaction Capacity
The Port Arthur LNG Phase 2 project plans to add two new liquefaction trains, capable of producing approximately 13 Mtpa of LNG. This expansion would bring the facility’s total capacity to 26 Mtpa, doubling its initial potential. Further discussions are ongoing regarding future phases of the project, which remain in preliminary development stages.
Phase 2 is attracting growing interest from international buyers. In July 2025, a similar 20-year SPA was signed with the Japanese company JERA Co. Inc., covering a capacity of 1.5 Mtpa on a free-on-board basis, subject to a positive final investment decision and customary closing conditions. These multiple commercial commitments reinforce the site’s position in the global supply of American LNG.
Regulatory and Contractual Progress in 2025
All required permits for the development of Port Arthur LNG Phase 2 have been secured. The project received approval from the Federal Energy Regulatory Commission (FERC) in September 2023, followed by an export authorization in May 2025 from the Department of Energy (DOE) for shipments to countries without a free trade agreement with the United States.
Meanwhile, Sempra Infrastructure has selected Bechtel to manage the engineering, procurement, and construction (EPC) of Phase 2. This appointment follows the same structure as Phase 1, which was also entrusted to Bechtel, a major player in the EPC segment of energy infrastructure.
Next Investment Decision Expected
Despite securing authorizations and major commercial agreements, the development of Port Arthur LNG Phase 2 remains subject to several conditions. These include finalizing remaining commercial contracts, securing the required financing, and reaching a final investment decision. Sempra aims to make this decision during 2025.
This latest milestone reflects the expansion of the U.S. LNG portfolio internationally, amid rising demand in Asian and European markets. The project’s evolution may impact global gas trade flows and the long-term structure of supply agreements.
