Recently, oil major ConocoPhillips (COP) and Australia’s Origin Energy Ltd., joint developers of a multi-billion dollar liquefied natural gas (LNG) project, chose a 230-hectare site for the venture’s processing plants. The 50-50 partnership, Australia Pacific LNG, zeroed in on Laird Point on Curtis Island near Gladstone in Queensland as the location of its proposed LNG plant.
The announcement of the site selection is being considered as a significant milestone in the development of the project, as the partners move towards the final investment decision (proposed for the end of 2010), followed by the first shipment to international markets (expected by the end of 2014).
In September last year, ConocoPhillips declared its plan to create a long-term Australasian natural gas business focused on coalbed methane production and LNG processing and sales in partnership with Origin Energy (Australia’s second-biggest electricity and gas retailer).
We believe that the Origin agreement will boost ConocoPhillips’ competitive position in the rapidly growing LNG market. The company anticipates a peak production of 175,000 net barrels of oil equivalent (BOE) per day in 2023.
Houston, Texas-based ConocoPhillips is a major global integrated oil company engaged in the exploration and production of oil and natural gas, refining and marketing of petroleum products, manufacturing of chemicals, and other energy-related businesses.
We currently rate ConocoPhillips shares as Neutral.
Read the full analyst report on “COP”
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