Texas-headquartered energy giant ConocoPhillips has disclosed two long-term strategic agreements, enabling it to supply liquefied natural gas (LNG) to the European and Asian markets from 2027.
The U.S. player’s first deal is related to capacity booking at Fluxys’ regasification terminal in Zeebrugge , Belgium, which will allow it to import and regasify 0.75 million tonnes per year (mtpa) of LNG for delivery in Belgium and throughout Europe, starting in April 2027.
On the other hand, the second deal is an LNG sales and purchase agreement to supply the Asian market, which is also due to begin the same year. Both deals are aligned with ConocoPhillips’ views on LNG, which the firm expects to play an increasingly important role in the global energy mix.
The latest LNG deals come months after the firm signed a 15-year commercial agreement to secure additional regasification capacity in Europe at the Gate LNG terminal in the Netherlands. The U.S. giant also inked a 20-year deal with Mexico Pacific, a developer of the LNG export project in Puerto Libertad, Sonora. In addition, ConocoPhillips penned two long-term LNG sale and purchase agreements with QatarEnergy for up to 2 million tons per annum of LNG from Qatar to Germany.
Due to LNG’s lower greenhouse gas (GHG) emissions than traditional hydrocarbon resources like coal used for electricity generation, the U.S. oil major intends to leverage its existing strengths in natural gas marketing and trading to support its growing global LNG portfolio to meet transition demand and energy security needs.
The company boosted its LNG portfolio in several key areas during 2022. In February 2022, the oil major bought an additional 10% shareholding interest in APLNG from Origin Energy, expanding its total equity share to 47.5% to supply natural gas to the growing Asia Pacific market and Australia’s east coast gas market. The following year, the U.S. firm decided to expand its shareholding interest to 49.99%.
ConocoPhillips also acquired a 30% direct equity holding in Port Arthur Liquefaction Holdings as well as 5 mtpa LNG offtake from the Port Arthur LNG project, which provides it with options to participate in future expansions and lower carbon activities, including carbon capture and storage (CCS).
Moreover, the U.S. energy heavyweight inked deals, forming two new joint ventures with QatarEnergy to participate in the North Field East (NFE) and the North Field South (NFS) LNG projects. The first delivery from NFE is expected in 2026 to the German LNG terminal at Brunsbüttel.
ConocoPhillips’ partnership in the North Field LNG expansion projects entails a 3.125% share in the NFE project and a 6.25% share in the NFS project. These are planned to start production in 2026 and 2027, respectively.