Sempra Signs 20-Year LNG Supply Deal With Petrobras for Port Arthur Phase 2
The 0.8 Mtpa agreement adds committed offtake for a proposed expansion that would double Port Arthur's total capacity to 26 Mtpa.
Sempra Infrastructure announced on Monday (2026-09-14) a 20-year sales and purchase agreement with Petrobras, committing to supply approximately 0.8 million tonnes per annum of LNG to the Brazilian state oil company. The deal is tied to Port Arthur LNG Phase 2, a proposed expansion that would add two liquefaction trains and lift total capacity at the Texas facility from approximately 13 Mtpa for Phase 1 to as much as 26 Mtpa.6
Sempra is trying to build a bankable offtake stack large enough to justify a final investment decision on that expansion. Each SPA adds to that stack, and the Petrobras agreement is the latest addition. Phase 2, which would consist of trains 2 and 4, is authorized to export the equivalent of 698 billion cubic feet per year — around 13.5 Mtpa — to both FTA and non-FTA countries on a non-additive basis, according to Sempra. At 0.8 Mtpa, the Petrobras deal covers roughly 6% of that authorized capacity.1,6
The announcement comes about ten weeks after Sempra's Pacific-facing export arm reached its own milestone. ECA LNG Phase 1 in Ensenada, Mexico shipped its first cargo on July 8 (2026-07-08), adding 0.4 billion cubic feet per day of nominal export capacity and tripling Mexico's LNG export capacity from a single train rated at 3.25 Mtpa. TotalEnergies, which holds a 16.6% stake in ECA alongside operator Sempra Infrastructure, dispatched that maiden cargo to Asia.4,53
The two projects serve different demand basins. Port Arthur Phase 2 is oriented toward Atlantic Basin buyers, while ECA's Pacific coast location shortens shipping routes to Asian markets. TotalEnergies holds exclusive offtake rights during ECA Phase 1's ramp-up period, and ECA Phase 2 — proposed at approximately 12 Mtpa across two trains — has not yet reached a final investment decision. Phase 1's commercial operations remain to be confirmed following the July first cargo.1,2
Petrobras imports LNG primarily for thermal power generation during dry seasons when hydropower output falls short. Demand fluctuates sharply from year to year depending on rainfall. A 20-year fixed-volume SPA at 0.8 Mtpa creates obligations on both sides regardless of domestic hydro conditions in any given year, which makes the pricing mechanism and destination flexibility terms commercially significant. Those terms have not been disclosed.6
JKM, the Asian LNG spot benchmark, was trading at $25.06/MMBtu on September 15 (2026-09-15), while NYMEX Henry Hub front-month gas stood at $2.92/MMBtu on the same day. That spread between US feedgas costs and Asian spot prices underpins the commercial rationale for Gulf Coast and Mexico-based export projects competing for long-term buyers.6
Sempra is running both development tracks simultaneously, and the Petrobras deal advances one of them. But 0.8 Mtpa is a modest increment against what Phase 2 needs to move toward a final investment decision. Sempra still needs to secure substantially more offtake before the economics close on the expansion.6,1
What traders and project watchers will monitor next is whether Sempra adds larger-volume commitments for Port Arthur Phase 2 at a pace that keeps the expansion timeline credible. Each new SPA narrows the gap, but one agreement at 0.8 Mtpa does not close it. The JKM-to-Henry Hub spread, wide on September 15 (2026-09-15), keeps the commercial case intact — for now.6