#United States #Houston #EQT Corporation #LNG Supply #Sempra Infrastructure

Sempra Infrastructure and EQT: A New Era in LNG Supply

In a significant move for the energy sector, Sempra Infrastructure has teamed up with EQT Corporation to secure a pivotal long-term liquefied natural gas (LNG) supply agreement from the upcoming Port Arthur LNG Phase 2 project, located in Jefferson County, Texas. The definitive sales and purchase agreement (SPA) is set to span an impressive 20 years, with EQT committing to a purchase of 2 million tonnes per annum (Mtpa) of LNG, priced on a free-on-board basis and indexed to the Henry Hub.

As Justin Bird, CEO of Sempra Infrastructure, highlighted, this partnership underscores a mutual commitment to bolster local economic development while providing a consistent, long-term LNG supply for global markets. He articulated the importance of this project in fortifying America's position as a leading energy exporter, aligning perfectly with both companies' strategic objectives.

Toby Z. Rice, president and CEO of EQT, echoed these sentiments, emphasizing the role of U.S. LNG in enhancing global energy security and the company's dedication to reducing carbon emissions. He expressed pride in collaborating with Sempra on this crucial venture, which aligns with their mission of achieving American energy dominance.

The Port Arthur LNG Phase 2 project is uniquely situated to cater to the escalating global energy demands, and it has already drawn significant interest from potential LNG buyers. Earlier developments have seen Sempra Infrastructure secure additional agreements, including a substantial deal in July 2025 with JERA Co., Inc., for 1.5 Mtpa of LNG offtake, as well as an expansion of a strategic alliance with ConocoPhillips for 4 Mtpa.

In a crucial step during its development, the Port Arthur LNG Phase 2 project received federal approval from the Federal Energy Regulatory Commission in September 2023, followed by an export authorization from the U.S. Department of Energy in May 2025. These authorizations pave the way for LNG exports to nations without a free-trade agreement with the United States, solidifying the project's operational viability.

Sempra Infrastructure has also engaged Bechtel for delivering the engineering, procurement, and construction services for the Port Arthur LNG Phase 2 facility. With these developments, Sempra continues to aim for a final investment decision on the project by the end of 2025.

Once completed, the Port Arthur LNG Phase 2 will comprise two liquefaction trains, boasting a potential production capacity of around 13 Mtpa of LNG. This capacity could effectively double the existing liquefaction capability of the Port Arthur facility from approximately 13 Mtpa in Phase 1 to an impressive 26 Mtpa overall. The first phase is currently under construction and is projected to begin commercial operations between 2027 and 2028.

However, the journey ahead is laden with risks and uncertainties. Achieving the necessary commercial agreements, obtaining and maintaining all required permits, securing financing, and reaching a definitive investment decision are some of the challenges that lie ahead.

Sempra Infrastructure, headquartered in Houston, is committed to creating a better energy future through modern energy infrastructure, focusing on LNG and innovative energy solutions. It is a subsidiary of Sempra (NYSE: SRE), a notable player in North American energy.

EQT Corporation, based in Pittsburgh, is recognized as a leading American natural gas company, concentrating its production and midstream operations in the Appalachian Basin. They are committed to sustainable practices and operational efficiency, thus continuously enhancing the production of reliable and low-cost energy for their stakeholders.

As the energy landscape continues to evolve, these two companies are poised to play a significant role in shaping the future of the industry, delivering safe and reliable energy to meet the world's insatiable demand.