ConocoPhillips strikes long-term LNG deal with Gulf Coast project

ConocoPhillips has signed a long-term sales and purchase agreement to purchase 1 million tonnes per annum (MTPA) of liquefied natural gas (LNG) from the Rio Grande LNG project under development by NextDecade Corporation in Texas, the company announced on Monday.

As part of the agreement, ConocoPhillips will offtake LNG over a 20-year term on a free-on-board basis, subject to NextDecade making a positive final investment decision on Train 5 of the Rio Grande LNG project.

The company utilizes its expertise in heavy hydrocarbon removal at the Rio Grande LNG facility using its OCP CryoSep technology.

Commenting on the agreement, Khoa Dao, chief commercial officer for ConocoPhillips, said that the company is pleased to announce their agreement with a premier operator in NextDecade at Rio Grande LNG, where they will be a key foundation customer for Train 5.

“We’re excited to help move this project closer to a final investment decision while advancing our global LNG portfolio strategy and 10 to 15 MTPA offtake ambition. We continue to build scale and diversification, adding supply and sales points offering further optionality for optimization,” Khoa Dao added.

• liquefied natural gas (LNG)
• million tonnes per annum (MTPA)