US LNG firm Venture Global LNG has signed two long-term liquefied natural gas supply deals with compatriot New Fortress Energy.
Under the first LNG sales and purchase agreement, Venture Global would supply about 1 mtpa for a period of twenty years to NFE from the Plaquemines LNG project in Louisiana.
In addition to this deal, NFE agreed to purchase 1 mtpa of LNG from Venture Global’s planned CP2 LNG facility, located in Cameron Parish, Louisiana for a period of twenty years.
“We are pleased to partner with Venture Global as we advance our mission of providing customers around the world with access to low-carbon natural gas and affordable electricity,” NFE chief Wes Edens said in a statement on Wednesday.
“These volumes support our plan to expand and diversify our stable natural gas supply portfolio to meet the growing needs of our customers in a structurally short global natural gas market,” he said.
First deal for CP2 LNG, Plaquemines LNG FID “soon”
Venture Global has this year awarded several contracts for its Plaquemines LNG export project which it expects to launch in 2024. It also recently signed a supply deal with Shell.
The first phase of the Plaquemines LNG project includes a capacity of 10 mtpa while the full project would have 20 mtpa capacity, four tanks, and three jetties.
On the other side, Venture Global filed a formal application requesting authorization from the FERC to site, construct, and operate the 20 mtpa CP2 LNG facility in December.
The new project would be located next to its Calcasieu Pass liquefaction plant in Louisiana, which is to export its third cargo since launch earlier this year.
Venture Global said in a separate statement on Wednesday this NFE deal marks the first SPA for the CP2 LNG project.
According to the firm, it expects to start construction on this facility in 2023.
Venture Global also said it aims to take formal FID on Plaquemines LNG “soon” and close project financing.
The company sold 14 million tonnes of the 20 mtpa nameplate capacity and expects to
announce contracts for the remaining capacity “in the coming weeks”.
With these agreements, Venture Global has now executed over 80 percent of long-term 20-year contracts signed by US LNG companies since 2017, it said.
“In today’s global market, execution and speed matter, and Venture Global is uniquely
positioned to quickly deliver US LNG capacity to meet the world’s growing demand for
energy,” Mike Sabel, CEO of Venture Global, said.
“With that in mind, and building on the successful record of 29 months from FID to first LNG production at Calcasieu Pass, our company has moved forward with an expedited schedule for Plaquemines,” he said.