Sempra Infrastructure, a subsidiary of North America’s energy infrastructure company Sempra, has signed a definitive sales and purchase agreement (SPA) with Pittsburgh-based EQT Corporation for liquefied natural gas (LNG) offtake from a project under development in Jefferson County, Texas.
The 20-year deal entails the delivery of 2 million tonnes per annum (mtpa) of LNG from the Port Arthur LNG Phase 2 development project. EQT will purchase the LNG on a free-on-board basis at a price indexed to Henry Hub.
“Advancing the Port Arthur LNG Phase 2 project with EQT reflects our mutual commitment to helping ensure U.S. natural gas projects continue to support local economic development and provide global markets with a stable, long-term supply of LNG,” said Justin Bird , CEO of Sempra Infrastructure.
The 13-mtpa Port Arthur LNG Phase 1 , which is currently under construction, is expected to achieve commercial operations for Train 1 in 2027 and for Train 2 in 2028. Phase 1 is a joint venture project between Sempra Infrastructure and ConocoPhillips.
In Phase 2, Sempra plans to build two liquefaction trains with an additional 13 mtpa, doubling the plant’s total capacity to around 26 mtpa.
Toby Z. Rice , president and CEO of EQT, stated: “This agreement underscores EQT’s role in unleashing U.S. LNG that enhances global energy security while driving progress toward lower-carbon solutions. We are proud to partner with Sempra Infrastructure on this critical project, helping further the quest to ensure American energy dominance.”
While Sempra says all major permits for the Port Arthur LNG Phase 2 development project have been secured, some requirements, such as commercial agreements and obtaining financing, are still pending. The company hopes to reach a final investment decision (FID) on Phase 2 this year.
The latest LNG deal follows two recent 20-year SPAs for LNG from the project, one for 4 mtpa with ConocoPhillips earlier this month and another with JERA for 1.5 mtpa of LNG offtake in July .