ConocoPhillips to buy 30% stake in Sempra's Port Arthur LNG project

ConocoPhillips (NYSE:COP) $ConocoPhillips(COP)$said Thursday it entered into a heads of agreement with Sempra (NYSE:SRE) $Sempra(SRE)$to acquire a 30% direct equity holding in the Port Arthur LNG project and joint participation in other related energy infrastructure in southeast Texas and the Pacific Coast of Mexico; financial terms are not disclosed.

The HOA also anticipates an agreement for a 20-year liquefied natural gas tolling arrangement for ~5M tons/year at Phase 1 of the Port Arthur LNG project under development, and Conoco (COP) would have the option to acquire LNG offtake and equity ownership from future contemplated LNG trains at the Port Arthur LNG site.

The first phase of the project is fully permitted and expected to include two liquefaction trains and LNG storage tanks, as well as associated facilities capable of producing up to 13.5M tons/year of LNG.

Both companies will also evaluate development of low-carbon projects, including a carbon capture and storage project for Port Arthur LNG, and Sempra (SRE) would have the opportunity to participate in carbon capture and sequestration projects developed by ConocoPhillips (COP) in Texas or Louisiana.