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ConocoPhillips Signs Long-Term LNG Supply Deal With Venture Global
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Key Takeaways
COP will buy 1 million tons of LNG annually from Venture Global for 20 years starting in 2030.
COP expects LNG demand to double by 2050 and is expanding its portfolio to meet growing global demand.
COP targets a 10-15 MTPA LNG portfolio, which could provide a significant source of cash flow growth.
ConocoPhillips (COP - Free Report) , a leading U.S.-based exploration and production company, recently announced a deal with Venture Global (VG - Free Report) to purchase 1 million tons of liquefied natural gas (LNG) per year, under a long-term supply agreement. COP will start buying LNG under this agreement from 2030 for a duration of 20 years. VG has mentioned that it looks forward to supporting ConocoPhillips in expanding its global LNG portfolio.
In its latest earnings call, ConocoPhillips has maintained a constructive view of LNG fundamentals in the coming years. In fact, the company expects LNG demand to double by 2050. As such, COP is expanding its LNG offtake portfolio to meet the growing demand. In the second quarter, the company’s Qatar LNG operations were affected due to the conflict in the Middle East. The Ras Laffan plant was largely shut down, affecting production volumes. However, COP affirmed that the NFE and NFS projects in Qatar were progressing well despite the conflict.
The company plans to build its LNG portfolio toward a targeted 10-15 million tons per annum (MTPA). The growing LNG exposure should enable COP to capitalize on rising global demand for the commodity. Its LNG operations could also provide a significant source of long-term cash flow growth.
Zacks Rank & Key Picks
COP currently carries a Zacks Rank #3 (Hold), while VG sports a Zacks Rank #1 (Strong Buy).
Valero Energy is a leading refining player with a robust network of 14 refineries and a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. VLO’s refineries have a combined Nelson Complexity Index of 11.5, which implies that the refineries can process a wide variety of feedstocks, convert them into higher-value products and shift product yields according to market conditions.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. It refines and markets oil products and gas, as well as engages in marketing and sales activities.
View the Zacks #1 Rank List
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ConocoPhillips Signs Long-Term LNG Supply Deal With Venture Global
Key Takeaways
ConocoPhillips (COP - Free Report) , a leading U.S.-based exploration and production company, recently announced a deal with Venture Global (VG - Free Report) to purchase 1 million tons of liquefied natural gas (LNG) per year, under a long-term supply agreement. COP will start buying LNG under this agreement from 2030 for a duration of 20 years. VG has mentioned that it looks forward to supporting ConocoPhillips in expanding its global LNG portfolio.
In its latest earnings call, ConocoPhillips has maintained a constructive view of LNG fundamentals in the coming years. In fact, the company expects LNG demand to double by 2050. As such, COP is expanding its LNG offtake portfolio to meet the growing demand. In the second quarter, the company’s Qatar LNG operations were affected due to the conflict in the Middle East. The Ras Laffan plant was largely shut down, affecting production volumes. However, COP affirmed that the NFE and NFS projects in Qatar were progressing well despite the conflict.
The company plans to build its LNG portfolio toward a targeted 10-15 million tons per annum (MTPA). The growing LNG exposure should enable COP to capitalize on rising global demand for the commodity. Its LNG operations could also provide a significant source of long-term cash flow growth.
Zacks Rank & Key Picks
COP currently carries a Zacks Rank #3 (Hold), while VG sports a Zacks Rank #1 (Strong Buy).
Some better-ranked stocks from the energy sector are Valero Energy (VLO - Free Report) and Galp Energia SGPS SA (GLPEY - Free Report) . While Valero sports a Zacks Rank #1, Galp Energia carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
Valero Energy is a leading refining player with a robust network of 14 refineries and a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. VLO’s refineries have a combined Nelson Complexity Index of 11.5, which implies that the refineries can process a wide variety of feedstocks, convert them into higher-value products and shift product yields according to market conditions.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. It refines and markets oil products and gas, as well as engages in marketing and sales activities.