ConocoPhillips Signs 20-Year LNG Deal With Venture Global
ConocoPhillips and Venture Global have signed a deal that would see the liquefied natural gas major supply 1 million tons to Conoco beginning in 2030. The deal is part of a broader trend in energy to boost LNG exposure after QatarEnergy’s force majeure, with the outlook for LNG demand remaining robust despite geopolitics and their effect on prices. “Venture Global is proud to welcome…
ConocoPhillips and Venture Global have entered into a 20-year deal for liquefied natural gas (LNG), with ConocoPhillips set to receive 1 million tons annually starting in 2030. This agreement comes as a result of the broader trend in the energy sector to increase LNG exposure following QatarEnergy's force majeure. Despite geopolitical factors affecting prices, the outlook for LNG demand remains robust.
Venture Global's CEO, Mike Sabel, expressed pride in welcoming ConocoPhillips as a long-term partner, highlighting the company's ability to deliver reliable, low-cost U.S. LNG quickly and at scale.
However, Venture Global's relationships with major oil companies have not always been smooth. Six international oil majors, including Shell, BP, and Repsol, have filed lawsuits against the company for violating long-term supply contracts by selling LNG on the higher-priced spot market. In 2023, Shell lost an arbitration against Venture Global, while a court ruled in favor of BP two months later.
Despite these challenges, Venture Global has been expanding its capacity. As of now, the company has a total of 100 million tons of LNG annual capacity, encompassing both operating and under-construction projects. The company operates as one of the leading LNG traders globally.
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