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Phillips 66 is looking to buy liquefied natural gas from the US through long-term contracts and is hiring staff in Houston to do this, according to people familiar.
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The discussions are preliminary, according to the people, who asked not to be named because the talks were private.
In a statement, Phillips 66 said its commercial team “continuously looks for ways to expand on the agility, sophistication and strategic impact it has built over the last several years with no associated capital expenditures,” while declining to comment further on the company’s commercial activities.
The move is a new direction for the Houston oil refiner, which is not known for trading LNG. It comes as gas producers such as EQT Corp. are also looking to sell to global markets. The US is the world’s largest exporter of LNG, mainly to Asia and Europe which are seeking to reduce carbon dioxide and other greenhouse gases from power plants, transportation and industry.
In recent years Phillips has touted itself as a diversified energy company rather than a traditional refiner, boosting its midstream and chemicals arms. That approach drew ire from activist investor Elliott Investment Management, which waged a proxy battle with the company centered on returning it to its refining roots.
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— With assistance from Mitchell Ferman
(Adds company comment in third paragraph)
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