ConocoPhillips Joins Venture Global’s Long-Term LNG Buyers · rigzone.com
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ConocoPhillips has agreed to buy one million metric tons per annum (MMtpa) of liquefied natural gas (LNG) from Venture Global Inc for 20 years from 2030.
“This agreement reflects continued market confidence in our proven ability to deliver reliable, low-cost U.S. LNG quickly and at scale”, Venture Global chief executive Mike Sabel said in a brief statement.
For its LNG supply business, ConocoPhillips aims to offtake 10-15 MMtpa, according to a company statement September 8, 2025 announcing a 20-year agreement for one MMtpa from NextDecade Corp’s Rio Grande LNG project in Texas.
Earlier last year Houston-based ConocoPhillips agreed to buy four MMtpa over 20 years from phase 2 of Sempra’s Port Arthur LNG project in Texas. ConocoPhillips had already signed up for five MMtpa over 20 years from phase 1, in which it also owns a 30 percent stake.
ConocoPhillips says on its website it has about 10 MMtpa of offtakes in North America, with initial deliveries between 2026 and 2031.
“From a regasification and sales perspective, we have placed the five MTPA [million metric tons per annum] of Port Arthur LNG Phase 1 offtake through regasification capacity agreements in Europe and direct sales agreements to Asia”, ConocoPhillips says. “We continue to progress discussions across all major LNG producing and consuming regions and markets to further add high-quality positions to our portfolio”.
Arlington, Virginia-based LNG developer Venture Global, meanwhile, says on its website it has over 100 MMtpa of LNG capacity already in production, under construction or under plan.
Just a few days ago Venture Global said it had executed a new agreement to supply 0.5 MMtpa of United States LNG to China Gas Holdings Ltd for 20 years from 2030.
“This SPA [sale and purchase agreement] brings Venture Global’s current long-term offtake with China Gas to 2.5 Mtpa under 20-year SPAs supplied across Venture Global’s portfolio”, Venture Global said September 14.
Three years ago the companies signed two SPAs, each with a term of 20 years.
“Under the deals, China Gas will buy one million tonnes per annum of LNG on a free on board basis from Plaquemines LNG and another one MTPA from the CP2 LNG export facility, both in Louisiana”, said a joint statement February 23, 2023.
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The project in Plaquemines Parish is preparing to start “commercial operation” by the fourth quarter, though Venture Global had already announced the start of shipments December 26, 2024.
“We are in the final stages of construction, commissioning and assurance testing required in advance of COD [commercial operations date] of our Plaquemines Project Phase 1, and the team is working tirelessly to safely complete the remaining phase 1 scopes”, Venture Global said in its quarterly statement August 10. “As recently communicated with our phase 1 customers, we are pleased to reaffirm that we are targeting Plaquemines Project Phase 1 COD in Q4 2026 and Plaquemines Project Phase 2 COD in mid-2027”.
Venture Global added, “We continue to progress early development of the Plaquemines Expansion Phase 1, following our permit applications filed with FERC [Federal Energy Regulatory Commission] and the DOE [Department of Energy] late last year. Subject to regulatory approvals, we are targeting FID [final investment decision] in the first half of 2027 and first LNG in 2029”.
On March 13 DOE approved an immediate 13 percent increase in exports from Plaquemines LNG. “With today’s order, Plaquemines LNG is now authorized to immediately export a total of 3.85 Bcfd [billion cubic feet per day] to both FTA [free trade agreement] and non-FTA countries”, the department said.
CP2, meanwhile, is under construction. CP2 holds FTA and non-FTA authorization to ship about 28 MMtpa or 1.45 trillion cubic feet a year of gas equivalent. Venture Global expects to put the project into production next year.
“During the quarter, we filed for CP2 brownfield expansion permits with FERC and non-FTA export authorization at DOE”, Venture Global said in its quarterly statement. “Subject to regulatory approval, we are targeting FID on the CP2 Expansion in early 2027 with first production in late 2028”.
To contact the author, email jov.onsat@rigzone.com
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Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
