ConocoPhillips Signs 20-Year LNG Supply Deal with Venture Global

ConocoPhillips has entered a 20-year agreement to purchase liquefied natural gas from Venture Global LNG starting in 2030, according to a report from Rigzone. The deal is for one million metric tons of LNG per year.

For Bakken operators, including ConocoPhillips itself as a major player in the region, long-term LNG contracts provide a potential blueprint for managing associated natural gas production. The Bakken formation is a primary oil-producing region, but significant volumes of natural gas are produced alongside that crude. Securing stable, long-term offtake agreements is crucial for the economics of gas production and for meeting flaring reduction targets in North Dakota.

While the specific LNG supply for ConocoPhillips' new deal may not originate in the Bakken, the company's growing global LNG portfolio creates optionality for its overall natural gas production. Investments in downstream gas markets help support upstream development by guaranteeing a future sales point. This is particularly relevant as state and federal regulations continue to pressure operators to capture and monetize, rather than flare, associated gas.

The 2030 start date for the Venture Global supply indicates the long-term planning horizon major operators are now employing for their gas assets. For other Bakken operators, such deals highlight the increasing importance of securing gas market access alongside oil development. A more robust market for natural gas, driven by global LNG demand, can improve the netback for wellhead gas prices in the Williston Basin, benefiting operators and royalty owners.