ConocoPhillips (COP) Enters 20-year LNG Purchase Pact with Sempra Infrastructure

ConocoPhillips (NYSE:COP) is one of the best dividend stocks to buy. On August 21, oil and gas giant ConocoPhillips entered a two-decade agreement to buy 4 MTPA of LNG from Sempra Infrastructure’s Port Arthur LNG Phase 2 project in Texas.

With the 20-year sales and purchase agreement, the company can source LNG on a free-on-board basis, fitting into its broader goal of supplying gas to markets around the globe.

This latest agreement adds to their existing partnership. ConocoPhillips had already signed a 20-year deal in July 2022 for 5 MTPA of LNG from Port Arthur LNG Phase 1 and purchased a 30% equity stake in the project, scheduled to start in 2027.

ConocoPhillips chief Ryan Lance added that the deal fits into the company’s global LNG strategy, helping to secure a strong supply network. He emphasized the firm’s financial health, pointing to its 55 years of continuous dividend payouts.

In Phase 2 of the Port Arthur LNG project in Texas, ConocoPhillips (NYSE:COP) will act only as an LNG buyer, unlike in Phase 1 where it also invested. The final investment decision for Phase 2 is yet to be approved.

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