KEY POINTS
- ConocoPhillips will buy 1 million tonnes of LNG yearly for 20 years.
- Deliveries under the deal will begin in 2030.
- Venture Global has over 100 million tonnes per year of LNG capacity in development, construction or production.
ConocoPhillips has signed a 20-year agreement with U.S. liquefied natural gas producer Venture Global to strengthen its LNG portfolio and secure long-term supplies.
Under the agreement, ConocoPhillips will purchase 1 million tonnes of LNG annually from Venture Global for two decades, with deliveries scheduled to begin in 2030.
The deal comes as global energy companies continue to secure long-term LNG supplies amid growing demand for natural gas and uncertainty surrounding some major LNG projects.
Deal to add 1 million tonnes of LNG annually
Venture Global and ConocoPhillips said the agreement will see the U.S. energy company receive 1 million tonnes of LNG every year for 20 years.
That translates to a total of 20 million tonnes of LNG over the life of the contract, beginning in 2030.
The agreement is expected to support ConocoPhillips’ efforts to expand its position in the global LNG market and provide additional supply for its growing portfolio.
ConocoPhillips expands LNG position
ConocoPhillips already has significant exposure to the global LNG industry, including a 30% interest in QatarEnergy’s Ras Laffan LNG project.
The company also holds interests in LNG expansion projects in Qatar, giving it a substantial position in one of the world’s leading gas-producing regions.
The new agreement with Venture Global will provide another long-term source of LNG as ConocoPhillips seeks to broaden its international gas business.
The company has been looking to strengthen its LNG portfolio as geopolitical tensions and disruptions create uncertainty around some existing and planned supplies.
Venture Global expands LNG capacity
Venture Global has rapidly expanded its presence in the global LNG market and said it now has more than 100 million tonnes per annum of LNG capacity either in production, under construction or in development.
The company’s first three major LNG projects are Calcasieu Pass, Plaquemines LNG and CP2 LNG, all located in Louisiana.
The projects form part of Venture Global’s strategy to build a large-scale LNG export business from the United States and supply international markets.
The long-term agreement with ConocoPhillips gives Venture Global another major customer for its LNG output and provides greater visibility over future sales.
Long-term LNG demand remains strong
The agreement comes as energy companies continue to position themselves for sustained demand for LNG, which is widely used for power generation, industrial activity and heating.
ConocoPhillips’ latest deal also underscores the importance of long-term supply agreements in the LNG market, where companies seek to secure volumes years ahead of actual deliveries.
For ConocoPhillips, the deal provides additional LNG supply from 2030, while Venture Global gains a long-term buyer for part of its future production.
The agreement therefore strengthens the relationship between two major U.S. energy companies as the global LNG market continues to expand and adjust to changing geopolitical and supply conditions.
