Sempra Infrastructure signs 20-year LNG supply agreement with EQT for Port Arthur Phase 2

A digital rendering of the Port Arthur LNG export terminal phase 2 (Image courtesy of Bechtel)

Sempra Infrastructure has reached a 20-year definitive sales and purchase agreement (SPA) with EQT Corp. for liquefied natural gas (LNG) offtake from the proposed Port Arthur LNG Phase 2 development project in Jefferson County, Texas.

Under the agreement, EQT will purchase 2 million tonnes per annum (Mtpa) of LNG on a free-on-board basis at a price indexed to Henry Hub. The supply will come from Phase 2 of the Port Arthur project, which is expected to include two liquefaction trains capable of producing approximately 13 Mtpa of LNG.

“Advancing the Port Arthur LNG Phase 2 project with EQT reflects our mutual commitment to helping ensure U.S. natural gas projects continue to support local economic development and provide global markets with a stable, long-term supply of LNG,” said Justin Bird, CEO of Sempra Infrastructure. “This development project can help fortify America’s position as a leading energy exporter.”

EQT CEO Toby Z. Rice said the agreement highlights the company’s commitment to expanding U.S. LNG exports. “This agreement underscores EQT’s role in unleashing U.S. LNG that enhance global energy security while driving progress toward lower-carbon solutions,” Rice said.

Project development milestones

The Port Arthur LNG Phase 2 project has gained traction over the past year, attracting strong interest from LNG buyers. In July 2025, Sempra Infrastructure signed a 20-year SPA with JERA Co., Inc. for 1.5 Mtpa of LNG. Earlier this month, the company expanded its alliance with ConocoPhillips, securing another 20-year SPA for 4 Mtpa of LNG offtake from the proposed facility.

Phase 2 would increase the liquefaction capacity of the Port Arthur LNG complex from approximately 13 Mtpa under Phase 1 to about 26 Mtpa when complete. Port Arthur Phase 1 is under construction, with commercial operations for its first and second trains expected in 2027 and 2028, respectively.

In September 2023, the Federal Energy Regulatory Commission approved the Phase 2 project. The U.S. Department of Energy authorized LNG exports to countries without a free-trade agreement with the United States in May 2025. All major permits for Phase 2 have now been secured.

Engineering, procurement and construction for Phase 2 will be delivered by Bechtel, according to Sempra Infrastructure. The company is targeting a final investment decision (FID) in 2025.

Market context

Port Arthur LNG is strategically positioned to meet growing global demand for LNG as countries seek energy security and lower-carbon solutions, the company said. EQT, the largest producer of natural gas in the U.S., has been vocal about the role of U.S. LNG.

“The U.S. has an opportunity to lead in both energy security and emissions reduction, and LNG exports are a key part of that equation,” Rice said.

The Phase 2 development remains subject to various risks, including completion of commercial agreements, financing and FID approval.