ConocoPhillips has announced the signing of a long-term sales and purchase agreement to lift 1 million tonnes per annum of liquefied natural gas from the Rio Grande LNG project under development by NextDecade Corporation, near Brownsville, Texas.
Under 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.
Khoa Dao, chief commercial officer for ConocoPhillips, commented on the partnership: “ConocoPhillips is pleased to announce our agreement with a premier operator in NextDecade at Rio Grande LNG, where we will be a key foundation customer for Train 5. We’re excited to help move this project closer to FID 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 optimisation.”
Technology Integration
Additionally, ConocoPhillips’ extensive expertise and experience in heavy hydrocarbon removal from feed gas is being utilised at the Rio Grande LNG facility through its OCP CryoSep® technology. OCP CryoSep provides targeted recovery and/or removal of heavy hydrocarbons that would otherwise freeze or lead to high BTU content in LNG and is offered as a stand-alone unit for any LNG liquefaction process or as an integrated unit for the Optimised Cascade® process LNG trains.
ConocoPhillips continues to enhance its flexible and reliable LNG supply network to meet growing energy demand. Most recently, the company announced a long-term offtake agreement for 4 MTPA of LNG from Port Arthur LNG Phase 2, which is in addition to a prior agreement for 5 MTPA of LNG from Phase 1.
The Rio Grande LNG agreement represents another strategic step in ConocoPhillips’ expansion of its global LNG portfolio, reinforcing its position as a key player in the international liquefied natural gas market whilst supporting the development of major US export capacity.
For more information visit www.conocophillips.com
