KEY POINTS
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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.
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.
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.
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.
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.
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).
