Sempra strikes LNG supply deal with ConocoPhillips

(Reuters) - Sempra Energy said that ConocoPhillips will buy 5 MMtpy of LNG from Phase 1 of the Port Arthur LNG project under development in Jefferson County, Texas.

U.S. oil and gas producers have rushed to back projects to spur domestic LNG development and exports. Western sanctions on Russia have choked an already undersupplied market and put U.S. gas prices and exports into high gear.

ConocoPhillips will acquire 30% of the equity in Port Arthur LNG Phase 1 and will manage the feedgas supply requirements for the facility, the companies said.

Financial terms of the agreement were not disclosed.

The Port Arthur LNG Phase 1 project is expected to produce up to about 13.5 million tonnes per annum of LNG, while a Phase 2 project is under marketing and development. (Reporting by Arshreet Singh; Editing by Krishna Chandra Eluri and Sriraj Kalluvila)

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