In February 2008, ConocoPhillips had entered into an agreement with an affiliate of GDF Suez which provides ConocoPhillips long-term access to the northwest Europe liquefied natural gas (LNG) market through GDF Suez’s regasification capacity at the Zeebrugge terminal.
According to the company, this arrangement has extended ConocoPhillips’s LNG market access position in the Atlantic Basin by adding access in northwest Europe to the company’s existing regasification capacity in the Freeport LNG terminal and planned capacity in the Golden Pass LNG terminal, both located in the US Gulf of Mexico.
Under a separate earlier agreement, ConocoPhillips also agreed to provide GDF Suez market access through its regasification capacity in the Freeport LNG terminal in Texas, expected to start in mid-2010.
Earlier in the first week of September 2008, ConocoPhillips and Origin Energy announced their plan to create a long-term Australasian natural gas business focused on coal bed methane production and liquefied natural gas (LNG) processing and sales.
The transaction is conditioned upon approval from Australia’s Foreign Investment Review Board and, if required as a result of an outstanding offer from BG to purchase all outstanding shares of Origin Energy stock, the approval of Origin Energy’s shareholders. Under the plan, ConocoPhillips would initially contribute US$5 billion to the joint venture and would carry Origin Energy for their first AU$1.15 billion in joint venture expenses. ConocoPhillips would make up to four additional payments of US$500 million to the joint venture based on project milestones, for a total possible cash acquisition investment of approximately US$8 billion at current exchange rates.
ConocoPhillips is an international, integrated energy company with interests around the world. Headquartered in Houston, the company had approximately $190 billion of assets, and $253 billion of annualized revenues as of June 30, 2008, claims the company.
