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Sempra announced Tuesday that its subsidiary, Sempra Infrastructure, and ConocoPhillips have executed a 20-year Sale and Purchase Agreement for 5 million tonnes per annum of liquefied natural gas from Phase 1 of the proposed Port Arthur LNG project under development in Jefferson County.

The parties also entered into an equity sale and purchase agreement whereby ConocoPhillips will acquire 30 percent of the equity in Phase 1 of Port Arthur LNG, and a natural gas supply management agreement whereby ConocoPhillips would manage the feedgas supply requirements for Phase 1 of the proposed liquefaction facility.

“At Sempra, we certainly believe that great projects are the result of great partnerships,” said Jeffrey W. Martin, chairman and chief executive officer of Sempra. “That is why we are excited to announce a broad strategic relationship with ConocoPhillips, which has a growing global footprint across the LNG value chain. Together, we have a shared view of the role this facility can play in supporting global economies with energy supplies that advance both energy security and environmental goals.”

Sempra is expected to make a final investment decision to pursue Port Arthur LNG in the first quarter of 2023.

Ryan Lance, chairman and chief executive officer of ConocoPhillips, said they are excited to partner with Sempra, adding participation in the Port Arthur LNG project further enhances their portfolio as ConocoPhillips responds to global demand for reliable supply of natural gas.

“Sempra has a demonstrated track record of success and shares our commitment to a lower-carbon future,” Lance said.

Sempra Infrastructure recently announced it is expecting to make a final investment decision for Phase 1 of the liquefaction project in the first quarter of 2023. Additionally, the company announced last month that it had finalized an engineering, procurement and construction contract with Bechtel Energy for Phase 1.

Under the terms of the EPC contract, Bechtel will perform the detailed engineering, procurement, construction, commissioning, startup, performance testing and operator training activities.

The Port Arthur LNG Phase 1 project is permitted and expected to include two natural gas liquefaction trains and LNG storage tanks, and associated facilities capable of producing, under optimal conditions, up to approximately 13.5 Mtpa of LNG.

A similarly sized Port Arthur LNG Phase 2 project is also competitively positioned and under active marketing and development.

Development of Phase 1 and Phase 2 of the Port Arthur LNG project is contingent on completing the required commercial agreements, securing all necessary permits, obtaining financing and reaching an affirmative final investment decision, among other factors.