Pittsburgh-based EQT Corporation, a vertically integrated natural gas company, and Texas-based Sempra Infrastructure, an energy infrastructure company, recently entered into a sales agreement.
Under the terms of the 20-year agreement, EQT will purchase 2 million tons per annum of liquefied natural gas (LNG) offtake from the Port Arthur LNG Phase 2 development project in Jefferson County, Texas. EQT will make the purchase on a free-on-board basis at a price indexed to Henry Hub.
“This agreement underscores EQT’s role in unleashing U.S. LNG that enhance global energy security while driving progress toward lower-carbon solutions,” Toby Z. Rice, EQT president and CEO, said. “We are proud to partner with Sempra Infrastructure on this critical project, helping further the quest to ensure American energy dominance.”
The Port Arthur LNG Phase 2 development project is under construction. One liquefaction train will begin commercial operation in 2027. A second train will begin commercial operation in 2028. Together, the trains are expected to produce up to approximately 26 million tons per annum.
The Federal Energy Regulatory Commission granted project approval in September 2023. The U.S. Department of Energy granted in export authorization in May for LNG exports to countries without a free-trade agreement with the United States.