Sempra Infrastructure and EQT Secure Long-Term LNG Supply for Global Energy Markets

Long-Term LNG Supply Agreement between Sempra Infrastructure and EQT

In a significant move for the energy sector, Sempra Infrastructure, a subsidiary of Sempra (NYSE: SRE), has announced a long-term sales and purchase agreement (SPA) with EQT Corporation (NYSE: EQT). This agreement, finalized on August 27, 2025, will see EQT procure 2 million tonnes per annum (Mtpa) of liquefied natural gas (LNG) from the Port Arthur LNG Phase 2 development project located in Jefferson County, Texas. The agreement is set to last for 20 years and underscores both companies' commitment to advancing U.S. energy leadership in the global market.

Details of the Agreement

Under the terms of the agreement, LNG will be sold on a free-on-board basis with pricing indexed to the Henry Hub, which serves as a crucial benchmark for natural gas prices in North America. Justin Bird, CEO of Sempra Infrastructure, emphasized the importance of the partnership, stating, “Advancing the Port Arthur LNG Phase 2 project with EQT reflects our mutual commitment to ensuring U.S. natural gas projects continue to support local economic development and provide global markets with a stable supply of LNG.” This statement highlights the collaboration's dual focus on economic growth and energy stability.

Toby Z. Rice, president and CEO of EQT Corporation, echoed similar sentiments regarding the role of U.S. LNG in enhancing global energy security while driving low-carbon energy solutions. This agreement comes at a time of growing demand for cleaner energy alternatives, positioning EQT as a vital player in responsible energy production.

Project Progress and Future Phases

The Port Arthur LNG Phase 2 project is strategically significant due to its ability to meet increasing global energy demands. The project has already garnered interest from potential buyers, as evidenced by another agreement signed with JERA Co., Inc. for the supply of 1.5 Mtpa of LNG earlier in July 2025. Additionally, Sempra has expanded its alliance with ConocoPhillips, agreeing on another 20-year SPA for 4 Mtpa of LNG. This multi-faceted development not only enhances the credibility of the Port Arthur project but also signals robust market interest and potential future expansions.

The project received a green light from the Federal Energy Regulatory Commission in September 2023, followed by export authorization from the U.S. Department of Energy in May 2025, which allows for exports to nations lacking free trade agreements with the U.S. Additionally, all essential permits for this ambitious project have been secured.

Furthermore, Sempra Infrastructure has selected Bechtel to oversee the engineering, procurement, and construction of the Port Arthur LNG Phase 2 facility. With this strong developmental momentum, Sempra Infrastructure aims to make a final investment decision by 2025, signaling an exciting phase of growth in the liquefied natural gas sector.

Capacity and Economic Impact

Upon completion, the Port Arthur LNG Phase 2 project will consist of two liquefaction trains capable of producing approximately 13 Mtpa of LNG. This will boost the overall liquefaction capacity of the facility from the current 13 Mtpa to nearly 26 Mtpa. Such expansion is crucial not only for meeting growing international demands but also for solidifying the U.S.'s status as a primary energy exporter.

Commercial operations of Port Arthur LNG Phase 1, which is currently under construction, are projected to commence from 2027 to 2028. These developments are expected to generate numerous job opportunities and foster economic development in the surrounding areas, contributing to both regional and national growth.

Looking Ahead

While the prospects for the Port Arthur LNG Phase 2 project appear promising, it remains subject to various risks, including securing necessary commercial agreements, obtaining financing, and the completion of construction with regulatory compliance. As such, ongoing efforts will be essential for ensuring the project's successful execution.

In summary, the partnership between Sempra Infrastructure and EQT represents a significant advancement in U.S. LNG supply strategies, aligning energy exports with broader economic and environmental goals. With continued investment and innovative energy solutions, Sempra and EQT are well-positioned to lead in the global energy landscape, making long-term contributions towards sustainable energy production.