Conoco to Buy Stake in Texas LNG Plant

ConocoPhillips, the third-largest U.S. oil company, said Sunday that it agreed to buy half of a company that would manage the first liquefied natural gas receiving plant to be built in the U.S. in more than two decades. ConocoPhillips also will buy two-thirds of the plant’s daily output.

Houston-based ConocoPhillips will be responsible for building and operating the facility in Quintana, Texas, the company said in a statement.

ConocoPhillips also will provide “a significant portion” of the building costs, it said, without elaborating on the cost of the plant.

The LNG receiving plant, planned by Freeport LNG Development, can store 6.9 billion cubic feet of the liquefied gas and supply 1.5 billion cubic feet per day of the natural gas to customers in Texas, the statement said.

“The Freeport LNG terminal is being developed in response to the growing need for new natural gas supplies for commercial, industrial and residential consumers in Texas,” ConocoPhillips said in the statement.