ConocoPhillips Posts 0.12% Drop on 164th-Ranked $510M Volume Amid 20-Year LNG Expansion Pact

On August 21, 2025, ConocoPhillips (COP) closed with a 0.12% decline, trading a volume of $0.51 billion, ranking 164th in market activity. The stock’s performance coincided with the announcement of a 20-year LNG offtake agreement between ConocoPhillips and Sempra Infrastructure for 4 million tonnes per annum (Mtpa) from the Port Arthur LNG Phase 2 project in Texas. This deal extends their existing partnership, where ConocoPhillips holds a 30% equity stake in Phase 1, expected to begin operations in 2027 and 2028. Phase 2, projected to add 13 Mtpa capacity, will nearly double the facility’s total output to 26 Mtpa, positioning it as a key player in U.S. LNG exports. The project has secured critical permits, including U.S. Department of Energy export authorization, and has engaged Bechtel for engineering and construction. ConocoPhillips emphasized the agreement aligns with its strategy to build a flexible global LNG supply network amid rising energy demand.

The Port Arthur LNG Phase 2 project is strategically significant, with Sempra Infrastructure having already secured a 1.5 Mtpa offtake agreement with JERA Co. Inc. in July 2025. The project’s development remains subject to commercial agreements, financing, and final investment decisions, which Sempra aims to finalize in 2025. While the partnership strengthens ConocoPhillips’ LNG portfolio, the project’s execution risks—including regulatory, financial, and operational uncertainties—could impact long-term returns. The deal underscores the growing role of U.S. LNG in global energy security, with both companies highlighting economic growth and job creation as key benefits. However, market participants will monitor the project’s progress and its alignment with broader energy transition trends.

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