CA - ConocoPhillips: Despite The 'Pause' Port Arthur LNG Is Full-On

2024-02-13 15:30:11 ET

Summary

• President Biden's "pause" on new LNG export terminals does not impact already approved projects, including ConocoPhillips' investment in the Port Arthur Phase 1 LNG terminal.
• ConocoPhillips has a strong presence in the Permian Basin (750,000 boe/d in Q4) and is shifting focus to the global LNG market.
• Port Arthur LNG Phase 1 is fully permitted. The project is moving forward with COP having a 30% equity stake, ~50% of offtake, and as gas marketing manager of the terminal.

In late January, President Biden issued a statement announcing a "pause" on pending approvals for new LNG export terminals. The negative response from the Republicans and the O&G industry was expected and did not disappoint. However, the "pause" does not impact LNG terminals that have already been approved by the Biden administration. As most of my followers know, I have been reporting on ConocoPhillips' ( COP ) pivot from investing heavily in shale to expanding its global LNG footprint . One of those investments is the Port Arthur LNG project led by Sempra Energy ( SRE ). Today, I will give investors a quick update on that project....

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