ConocoPhillips Locks in 20-Year LNG Deal with Venture Global
ConocoPhillips has signed a 20-year deal to purchase liquefied natural gas (LNG) from Venture Global, one of the world's largest LNG traders. The agreement will see ConocoPhillips receive 1 million tons of LNG per year starting in 2030. This move is part of a broader trend in the energy sector to boost LNG exposure, following QatarEnergy's force majeure and robust demand.
Venture Global CEO Mike Sabel said they are 'proud' to welcome ConocoPhillips as a long-term partner, citing continued market confidence in their ability to deliver reliable, low-cost U.S. LNG quickly and at scale. The company has been building its capacity at several facilities, with 100 million tons of annual LNG capacity currently available.
Notably, Venture Global has had previous disputes with major oil companies over long-term supply contracts. Shell and BP were among those who sued the company for allegedly violating contractual obligations by selling on the spot market. However, a recent arbitration ruling in favor of Venture Global suggests they may have acted within their rights.