KEY POINTS

  • ConocoPhillips and its predecessors have been key in developing LNG technology and infrastructure.

  • The Optimized Cascade® Process enabled lower-cost and efficient LNG projects globally.
  • Influence was expanded through key projects in Trinidad, Australia, Qatar and the U.S.
  • Recent deals include investments in Australia, Qatar, the Netherlands and Belgium.
  • ConocoPhillips remains committed to innovation, partnerships and industry leadership.

ConocoPhillips has been instrumental in shaping the global liquefied natural gas (LNG) industry, from pioneering early technologies to forming key international partnerships.

Old black and white photo of ship
Methane Pioneer

The origins of the LNG business date back to the mid-1950s, when Continental Oil Company (now ConocoPhillips) and Union Stockyards established Constock. According to Continental’s 1957 annual report, Constock was created with the goal of transporting liquid methane from gas-producing to fuel-deficient regions worldwide, facilitated by the conversion of a WWII cargo ship into the Methane Pioneer. In January 1959, this diesel-powered vessel completed the inaugural LNG shipment from Lake Charles, Louisiana, to Canvey Island, England.

Subsequently, the company—renamed Conch International Methane—commissioned two tankers specifically designed for LNG transport. Launched in the early 60s, the Methane Princess and the Methane Progress heralded a significant period of development for the global LNG industry that included regular commercial trade and expanded international activity. Notably, Algeria exported its first commercial LNG cargo in 1964 after the completion of the CAMEL liquefaction plant at Arzew. On October 12, 1964, the Methane Princess delivered this initial cargo to Canvey Island, opening sustained LNG trade between Algeria and the United Kingdom.

offshore platform with ice surrounding
Tyonek natural gas platform

Half a world away, exploring for oil in Alaska’s North Cook Inlet, Phillips Petroleum Company discovered substantial natural gas reserves. Given limited local demand, the company turned its attention to Japan where burgeoning energy needs spanned industrial, heating and power generation sectors.

In 1961, young college graduate Jim Iijima joined Phillips in Tokyo as a marketing associate, selling petroleum products, plastics and chemicals across Japan, Korea and Taiwan. Within two years, Iijima joined the Phillips team investigating LNG transport logistics from Kenai, Alaska, to Japan.

Black and white photo with three people in foreground. A man and woman are lifting a bouquet of flowers. In the background is the ship's bow with the name Arctic Tokyo.
On Sept. 23, 1969, the world’s two largest LNG tankers, the Arctic Tokyo and Polar Alaska, were christened at the shipyards in Malmö, Sweden.

By July 1969, Phillips reached a significant milestone with the completion of the Kenai LNG plant utilizing its proprietary Optimized Cascade® Process technology, enabling improved LNG production efficiency and launching the inaugural LNG delivery to Tokyo.

The Alaska-Japan LNG project, representing a $200 million investment, was Phillips’ most ambitious endeavor to date. It encompassed the construction of the Tyonek natural gas platform, extensive pipeline infrastructure and the Kenai LNG plant. Implementing the Optimized Cascade® Process, natural gas was chilled to minus 259 degrees Fahrenheit and loaded onto purpose-built vessels for the 3,250-nautical-mile voyage across the Pacific.

On Oct. 26, 1969, the Polar Alaska carried the first-ever cargo of LNG to Japan. The ship’s arrival at a receiving terminal in Tokyo Bay marked the beginning of a long and fruitful relationship between the company and its Japanese customers.

Side by side head shots
Jim Iijima, 1961 and 2009

Jim Iijima devoted the next half-century to managing LNG marketing in Japan and was instrumental in shaping the company's strategy. Often referred to as “Shogun-san, he mentored numerous ConocoPhillips' employees over the following decades. At a 2009 event marking the 40th anniversary of LNG shipments, Iijima compared LNG contracts to marriage, emphasizing that cooperation and the pursuit of balanced, mutually beneficial solutions are essential for both parties involved. This collaborative philosophy continues to guide ConocoPhillips’ approach to the LNG business, underscoring the importance of long-term relationships built on mutual trust and shared benefits.

From the 1970s to early 1990s, the global LNG market saw major advances in liquefaction and import infrastructure, fueled by rising energy demand in North America, Europe and Asia. In Australia, the Northwest Shelf Venture became a key LNG producer, paving the way for the Darwin and APLNG ventures in the 21st century.

In the late 1990s, new exporters from Qatar, Oman, Nigeria and Trinidad entered the market.

Qi Ma

In March 1999, the Atlantic LNG Company of Trinidad and Tobago became the first client outside ConocoPhillips to adopt the Optimized Cascade® Process.

“Trinidad and Tobago led to Darwin, two Africa projects, nine trains for Cheniere and a wave of Australia projects including Australia Pacific LNG, said LNG Process Engineering Supervisor Qi Ma, who has been a member on the engineering side of the LNG Technology & Licensing team since 2008. 

“This proprietary technology has led to the licensing of over 120 MTPA of LNG capacity, representing approximately 21% of the global installed capacity. We believe the lower production cost and increased thermal efficiency will position ConocoPhillips’ Optimized Cascade® Process technology to compete for new liquefaction capacity being developed.”

What is an LNG train?

An “LNG train is the term for a sequential series of processing units and equipment within an LNG liquefaction plant that converts natural gas into liquefied natural gas by removing impurities and cooling it to approximately -260°F (-162°C). A typical train consists of a compression area, propane condenser area, and methane and ethane areas. The largest LNG train in operation today is in Qatar, with a total production capacity of 7.8 million tonnes per annum (MTPA).

LNG Technology & Licensing team

ConocoPhillips continued to expand its influence, signing the Qatargas 3 agreement in June 2003 and launching the Darwin joint venture in 2005. The APLNG joint venture with Origin, established in October 2008, commenced operations in January 2016. These projects underscored the company's dedication to advancing global LNG production.

Darren Meznarich standing near wall with large photos of LNG locations
Darren Meznarich

LNG Technology & Licensing Manager Darren Meznarich, who rose from a young engineer at the Sweeny Refinery to senior leadership roles in the LNG sector, reflected, “I feel my whole career built toward managing the LNG technology and licensing business,” and added, “We are unique in the industry with more than six decades of design, engineering and commercial experience. It’s not an exaggeration to say our ConocoPhillips commercial and technical experts played a pivotal role in developing the LNG business.”

ConocoPhillips continues to build on its LNG legacy.

The company’s commitment to APLNG strengthened in February 2022 when it completed the purchase of an additional 10% shareholding interest from Origin Energy. In July of that year, ConocoPhillips signed an agreement with Sempra Infrastructure, a leader in North American energy network infrastructure. This was followed in November 2022 by investments in Qatar's North Field East and North Field South joint ventures that include supplies to Europe.

Rajiv Panicker sitting at a table in large indoor space
Rajiv Panicker

ConocoPhillips continues to build out its LNG business, adding LNG offtake from Port Arthur Phase 1, Equatorial Guinea via the Marathon acquisition, and Port Arthur Phase 2, which was recently announced. 

“We are building relationships around the world that allow us to place our LNG volumes where they need to be, when they need to be,” said LNG Trading & Origination Manager Rajiv Panicker. “We have added regasification capacity across Europe in Germany, the Netherlands, Belgium and France and secured gas sales in South Korea and China. We have also re-entered the market to charter LNG vessels that are significantly more modern and efficient versions of the now decommissioned Methane Princess and Methane Progress.”

Today, advanced ships and pipelines transport LNG globally, supplying clean fuel that supports affordable energy, economic growth and lower emissions. 

Khoa Dao sitting at a table in office setting
Khoa Dao

Chief Commercial Officer Khoa Dao summed up ConocoPhillips’ approach: “As a pioneer of the Optimized Cascade Process, ConocoPhillips is present in every segment of the LNG value chain and brings deep expertise to the business. We are expanding our portfolio beyond resource development to provide the flexibility our customers need. With our scale, financial strength and capabilities, we are well positioned to lead the continued growth of the global LNG industry.”

Latest LNG news
  • Monkey Island LNG selects ConocoPhillips’ Optimized Cascade® Process technology. Learn more

  • Coastal Bend LNG selects ConocoPhillips’ Optimized Cascade® Process technology. Learn more

  • ConocoPhillips further expands LNG business with additional Gulf Coast offtake agreement. Learn more