Sempra Infrastructure has formalized an agreement with ConocoPhillips, giving the independent 5 million metric tons/year (mmty) of offtake and a 30% stake in its planned Texas export project east of Houston.

The subsidiary of San Diego-based Sempra disclosed Tuesday that it executed a 20-year sales and purchase agreement (SPA) with ConocoPhillips for supply from Port Arthur LNG. As outlined in a heads of agreement in July, ConocoPhillips also agreed to manage feed gas supply for the first phase of the 13.5 mmty project.

ConocoPhillips CEO Ryan Lance said the new equity stake and addition of liquefied natural gas to market overseas “will further enhance our portfolio as we continue to respond to global demand for reliable supply of natural gas.”

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The Houston-based oil and gas producer, the largest independent in the country, has been making moves throughout the year to grow its exposure to global LNG markets. The company disclosed it was taking stakes in QatarEnergy’s North Field South and East LNG expansions. Management also told investors this month it was exploring Sempra’s developing projects on Mexico’s West Coast.

The latest deal aligns with Sempra’s strategy to secure its export projects with equity partnerships and long-term agreements. Earlier in November, executives told investors a final investment decision for Port Arthur LNG was targeted for early next year.

Sempra also is focused on marketing volumes for a second phase of Port Arthur LNG, already in the permitting process. The expansion could add two trains and boost capacity to roughly 27 mmty. 

Sempra has a potential agreement with the Ineos Group Ltd. for offtake from Port Arthur. Sempra also recently fetched a preliminary 2.25 mmty offtake agreement with Germany’s RWE AG. In addition, Polish Oil & Gas Co. signed a preliminary agreement for 3 mmty that could come from a combination of Sempra’s second phase of the Cameron LNG facility in Louisiana and Port Arthur LNG.

Last month in an updated engineering, procurement and construction (EPC) contract estimate by Bechtel Energy Inc., construction of Port Arthur could cost $10.5 billion, up from an estimated $8.9 billion in 2020.