ConocoPhillips announced on Thursday it will secure 4 million tonnes per annum of LNG from Sempra’s Port Arthur LNG Phase 2 project in Jefferson County, Texas, for global markets. The 20-year free-on-board agreement enhances ConocoPhillips’ LNG strategy.

A screen displays the logo for ConocoPhillips on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., April 6, 2022.

The U.S., the top LNG exporter, expects a capacity of 115 million metric tons per annum this year, per the U.S. Energy Information Administration. Sempra CEO Jeffrey Martin said: “The role of U.S. LNG in meeting the energy security needs of America’s allies continues to grow.” The project will connect U.S. producers to international markets, boosting domestic economic growth.

Approved in May for exports to Europe and Asia, Phase 2 awaits a final investment decision this year. ConocoPhillips CEO Ryan Lance stated: “This SPA advances our global LNG portfolio strategy as we build a flexible and reliable LNG supply network to meet growing energy demand.” Analyst Gabriele Sorbara added: “We expect more natural gas supply deals from the industry tied to LNG and data center demand growth.”

In 2022, ConocoPhillips secured 5 million tonnes per annum from Phase 1 and a 30% equity stake, with operations expected in 2027.