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ConocoPhillips Strikes 20-Year LNG Deal With Sempra's Port Arthur
ConocoPhillipsConocoPhillips(US:COP) ZACKSยท2025-08-25 15:06

Core Insights - ConocoPhillips has secured a significant LNG supply agreement with Sempra Infrastructure, purchasing 4 million tons per annum (MTPA) from the Port Arthur LNG Phase 2 project over a 20-year term, aimed at meeting increasing global demand, particularly in Europe and Asia [1][10] Company Developments - The agreement underscores ConocoPhillips' long-term commitment to LNG, enhancing its capability to establish a flexible and reliable supply network to address rising demand and bolster energy security [2][6] - This deal builds on a previous 20-year agreement for 5 MTPA from Port Arthur Phase 1, where ConocoPhillips also acquired a 30% equity stake, with operations expected to commence in 2027 [5][10] Industry Context - The U.S. LNG sector is experiencing accelerated commercial activity following the lifting of a moratorium on new export permits, with the U.S. already being the largest LNG exporter globally, projected to reach an export capacity of 115 million metric tons per annum by the end of 2025 [3] - The Port Arthur project is positioned to enhance connections between U.S. producers and international markets, contributing to economic growth domestically while meeting the energy security needs of U.S. allies [4][6]