Port Arthur LNG to Supply Petrobras for 20 Years

Sempra Infrastructure has entered into a long-term sale and purchase agreement with Petróleo Brasileiro SA, according to Rigzone. Under the terms of the 20-year contract, Petrobras will receive approximately 0.8 million metric tons of liquefied natural gas per year. The supplies will originate from the second phase of the Port Arthur LNG facility, which is currently being developed in Jefferson County, Texas.

Justin Bird, the chief executive of Sempra Infrastructure, noted that Petrobras is the first South American firm to join the company's LNG portfolio. This deal adds to a series of existing commitments for the second phase of the project. Previous agreements include long-term contracts with EQT Corp, ConocoPhillips, and Japan's JERA Co Inc. ConocoPhillips also holds a significant equity stake in the first phase of the development.

The Port Arthur Phase 2 project is designed to include two liquefaction trains with an annual export capacity of roughly 13.5 million metric tons. Federal regulators have authorized the facility to ship gas to both free trade and non-free trade agreement countries. This specific expansion recently signaled a restart in the federal permitting process following a previous temporary suspension of export approvals by the United States government.

Construction on the initial phase of the Port Arthur site is already underway, with commercial operations for the first two trains expected to begin between late 2027 and 2028. Sempra Infrastructure anticipates that the third and fourth trains, which comprise Phase 2, will come online in 2030 and 2031. The company stated that the facility's location provides strategic access to major domestic gas basins and scalable midstream infrastructure.