This Oil Stock Is Making a Massive Bet on Natural Gas

Natural gas is becoming an increasingly vital fuel. It produces fewer carbon emissions when consumed than coal and refined petroleum products, making it a cleaner option for the economy and environment. Meanwhile, energy security has come to the forefront, with Russia using its vast natural gas resources as a strategic weapon in Europe following its invasion of Ukraine.

These trends are leading U.S. oil and gas giant ConocoPhillips (NYSE: COP) to significantly ramp up its natural gas investments. The company recently announced its third deal to expand its liquified natural gas (LNG) capabilities, setting it up to capitalize on growing global natural gas demand.

ConocoPhillips unveiled the latest expansion of its global LNG business by signing an agreement with Sempra (NYSE: SRE). The company will take a 30% stake in Sempra's large-scale Port Arthur LNG project and purchase up to 5 million tons of LNG per year produced from that facility. That's a sizable portion of the facility's planned 13.5-million-ton annual capacity from two liquefaction trains. ConocoPhillips will also supply an equal amount of natural gas to the facility and potentially provide additional volumes if needed.

Source Fool.com