ConocoPhillips to Buy Stake in Proposed Port Arthur LNG Project

0

[ad_1]

Houston-based independent oil company ConocoPhillips is cementing its agreement to purchase more than one-third of liquefied natural gas per year from Sempra’s proposed Port Arthur LNG project in Jefferson County.

On Tuesday, the companies said they had entered into a strategic partnership in which Conoco agreed to a 20-year sale and purchase agreement for 5 million metric tons per year of liquefied natural gas from the project. It is to cement a partnership announced in July in which ConocoPhillips agreed to buy a 30% stake in the project from Sempra – giving the oil major a significant stake in what has the potential to be one of the next major LNG export terminals in the States States to begin construction.

The partnership gives San Diego-based Sempra a stronger foundation for building the first phase of its 13.5 million metric ton facility in Port Arthur and would give Conoco a greater presence in the LNG industry. – a path for its growing natural gas production and a move says it is pursuing its carbon reduction targets.

RELATED: Cheniere inaugurates $8 billion Corpus Christi expansion betting on the future of natural gas

“We are delighted to partner with Sempra, and our participation in the Port Arthur LNG project will further enhance our portfolio as we continue to meet global demand for reliable natural gas supply,” said Ryan Lance, CEO of ConocoPhillips. , in a press release. . “Sempra has a proven track record of success and shares our commitment to a low-carbon future.”

As part of the agreement, ConocoPhillips will manage the natural gas supply of the project’s first phase for liquefaction.

“At Sempra, we certainly believe that great projects are the result of great partnerships,” Sempra CEO Jeffrey W. Martin said in a statement. “That’s why we are delighted to announce an extensive strategic relationship with ConocoPhillips, which has a growing global footprint in the LNG value chain.”

Sempra said it expects to make a final investment decision for the first phase of the project in early 2023.

Houston Chronicle reporter Amanda Drane contributed.

[ad_2]
Source link

Share.

Comments are closed.