Liquefied natural gas (LNG)

ConocoPhillips has a 60-year history of leadership in LNG and LNG technology. While LNG is still considered part of our traditional oil and gas business, its prominence is increasing in global energy markets. We view LNG as an important component of responsibly meeting energy transition demand in the coming decades.  

The use of natural gas in place of coal and refined products represents a specific opportunity for significant reductions in end-use GHG emissions across the globe and it is a key contribution to the energy transition. We expect LNG to play an increasingly important role in the global energy mix, as it has lower GHG emissions than traditional hydrocarbon resources like coal used for electricity generation.  

ConocoPhillips will leverage its existing strengths in natural gas marketing in support of its growing global LNG portfolio to meet transition demand and energy security needs.  

Beginning in 2022, we focused on growing our LNG portfolio in several key areas. In February 2022, we completed the purchase of an additional 10% shareholding interest in APLNG from Origin Energy, expanding our total equity share to 47.5%. This additional stake demonstrates our commitment to provide a reliable and efficient supply of natural gas to Australia’s east coast gas market and to the growing Asia Pacific market. 

In 2022, we entered into an agreement with Port Arthur Liquefaction Holdings, LLC and the project reached final investment decision in early 2023. The first phase of the project is expected to include two liquefaction trains, LNG storage tanks and associated facilities. Our position as one of the largest natural gas marketers in North America enables us to provide feedstock supply. Entering this agreement provides us with a ground-floor opportunity to participate in a premier LNG development, reinforcing our commitment to help solve the world’s energy supply needs and seeking to strengthen U.S. and global energy security as we transition to a lower carbon future. Further, equity ownership in the Port Arthur LNG project provides options for ConocoPhillips to participate in future expansions and lower carbon activities, including CCS, in line with our own strategic initiatives as we continue to monitor the energy transition pathway. 

In 2022, ConocoPhillips signed agreements forming two new joint ventures with QatarEnergy. In December 2022 we completed the acquisition of a 25% interest in QatarEnergy LNG NFE (4) (NFE4), which has a 12.5% interest in the NFE project. In June 2023 we completed the acquisition of a 25% interest in QatarEnergy LNG NFS (3) (NFS3), which has a 25% interest in the NFS project. In November 2022, ConocoPhillips and QatarEnergy announced an agreement to responsibly and reliably supply secure, long-term LNG to the German LNG Terminal at Brunsbüttel.  

In 2023, we continued advancing our LNG portfolio in several key areas:  

  • Secured regasification capacity at the Gate LNG terminal in the Netherlands, in addition to our regasification capacity at German LNG. 
  • Reached final investment decision securing 5 MTPA of LNG offtake along with 30% equity in Sempra’s Port Arthur LNG Phase 1 project on the U.S. Gulf Coast, which began construction in March 2024. 
  • Signed offtake agreements at Mexico Pacific’s Saguaro Energía LNG, subject to final investment decision, and Energia Costa Azul export facility on the west coast of Mexico. 

In addition to these specific projects, we have licensed our liquefaction Optimized Cascade® Process in 28 trains around the world. This is the industry-leading liquefaction technology of choice for low-cost LNG train designs using scalable, modular construction from 1.5 to 8 MTPA that deliver low-emissions, high availability and efficiency. 

In 2023, we supplied Asian markets with approximately 0.34 trillion cubic feet (or nearly 1 billion cubic feet per day) of natural gas and LNG. To put this in perspective, if all the natural gas and LNG we sold to Asia in 2023 had been used to replace coal for electricity generation, GHG emissions would have been reduced by approximately 20 million tonnes, 16% more than the company’s combined Scope 1 and Scope 2 emissions for the year, based on EPA GHG emissions factors. 

Our marketing efforts are focused on further progressing the placement of our offtake volumes into Europe and Asia.