Venture Global, Eni ink 20-year CP2 LNG supply deal

Under the terms of the SPA, Eni will purchase 2 million tonnes per annum (mtpa) of LNG from the first phase of Venture Global’s third facility, CP2 LNG, for 20 years, according to a statement by Eni.

The agreement is Eni’s first long-term LNG supply from the US.

Eni said the deal represents a “significant milestone” in its strategy to expand and diversify its global LNG footprint, enhancing portfolio flexibility.

Part of these volumes will contribute to the diversification of Europe’s gas supplies, according to Eni.

13.5 mtpa of LNG sold

Venture Global said in a separate statement that approximately 13.5 mtpa of CP2 Phase 1 has been sold, raising the total contracted capacity for all of Venture Global’s projects to 43.5 mtpa.

To date, Venture Global has supplied Italy with nearly 40 cargoes of US LNG from its Calcasieu Pass and Plaquemines LNG facilities, the firm noted.

“We are honored that Eni, a leading innovator and global gas player, has chosen Venture Global as their first American LNG supplier,” Venture CEO Mike Sabel said.

He said that Italy is an “important ally and trading partner to the United States.”

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.

Venture Global recently signed a 20-year LNG supply contract with German gas importer Securing Energy for Europe (SEFE) for volumes from the CP2 project.

Under the deal, SEFE’s subsidiary, SEFE Energy, will purchase an additional 0.75 mtpa of LNG from CP2 LNG for 20 years.

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.

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.

$28 billion

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.