Devon Energy Corp., known as a sizable Lower 48 independent, is considering an LNG offtake agreement and investment stake intended to send natural gas volumes to Europe in a move management says is more about the firm’s DNA than the market of the moment.

devon lower 48 map

Oklahoma City-based Devon, one of the largest U.S. natural gas and oil producers, is negotiating to potentially take up to 2 million metric tons/year (mmty) of offtake capacity and an undisclosed future stake in Delfin Midstream Inc. Delfin is developing two modular floating liquefied natural gas (FLNG) projects offshore Louisiana that could eventually add 21 mmty to U.S. export capacity.

For Devon, a Permian Basin-weighted exploration and production firm, an LNG investment might seem like a strategy shift. However, Vice...