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Under the deal, SEFE’s subsidiary, SEFE Energy, will purchase an additional 0.75 million tonnes per annum (mtpa) of LNG from CP2 LNG, Venture Global’s third project, for 20 years.
Ventire Global said this amends the existing sales and purchase agreement signed by the companies in 2023, increasing the total volume of LNG purchased by SEFE from CP2 LNG to 3 mtpa.
The USLNG exporter is expected to become Germany’s largest LNG supplier, with a combined 5 mtpa of 20-year offtake agreements signed with SEFE and EnBW.
In addition to its existing long-term agreements, Venture Global to date has supplied Germany with almost 80 cargoes of LNG from its Calcasieu Pass and Plaquemines LNG facilities, enough to power 8 million German homes for one year, the firm noted.
“Venture Global is thrilled to expand our strategic partnership with Germany and SEFE and play a leading role in ensuring security of energy supply and affordability for not only Germany but the rest of the European gas market,” said CEO Mike Sabel.
In May, Sabel said that the company expects to sign and report on multiple 20-year LNG supply contracts in the incoming quarters.
“We’re very active in a significant number of negotiations for long-term contracts at this point, mostly all 20-year terms,” Sabel said.
Prior to this contract with SEFE, Venture Global signed a 20-year LNG supply contract with Malaysian energy giant Petronas.
Under the terms of this SPA, Petronas will purchase 1 mtpa of LNG from Venture Global’s CP2 LNG for 20 years.
CP2 LNG
In March, Venture Global announced it had launched the formal FID process for CP2 LNG.
Moreover, Venture Global recently initiated full mobilization and started site work at the company’s third LNG export facility.
The launch of the site work came shortly after CP2 received final approval and notices to proceed from the US FERC, and weeks after receiving its non-FTA export authorization from the US DOE.
The CP2 LNG plant site is situated adjacent to Venture Global’s existing Calcasieu Pass liquefaction plant in Louisiana, which commenced commercial operations in April.
It is expected to have peak production capacity of up to 28 mtpa.
Venture Global estimates that the total project costs for the CP2 project, including both phases, will range from about $27 billion to $28 billion.