ConocoPhillips Agrees to Buy 1 Million Metric Tons of LNG Annually

ConocoPhillips will buy 1 million metric tons of liquefied natural gas annually from Venture Global for 20 years, with supply scheduled to start in 2030 under an agreement announced Oct. 1.

The companies did not disclose the price, identify the facility that will supply the LNG or provide delivery terms. Their announcement did not explain why they reached the agreement.

Venture Global CEO Mike Sabel said the agreement reflected “continued market confidence in our proven ability to deliver reliable, low-cost U.S. LNG quickly and at scale.” The company says it has more than 100 million metric tons per year of capacity in production, construction or development. That figure includes projects that are not yet operating.

Qatar’s LNG disruptions provide broader market context. QatarEnergy declared force majeure on LNG supplies to affected buyers March 4 after halting production. On March 19, it said missile damage had reduced Qatar’s LNG export capacity by 17% and could take up to five years to repair. The company estimated the damage would mean about $20 billion in annual lost revenue.

The companies did not link the Qatar disruptions to the ConocoPhillips agreement, which is scheduled to begin in 2030.