US LNG exporter Venture Global LNG has signed a long-term liquefied natural gas supply deal with Japan’s Inpex.
Under the deal, Inpex Energy Trading Singapore, a unit of Inpex, woud buy one million tons per annum of LNG from Venture Global’s CP2 LNG on a FOB basis for a period of 20 years, according to a statement by Inpex.
“This agreement will enable the Inpex Group to procure LNG from the United States – one of the world’s leading LNG exporters – on a long-term basis, expand its LNG supply capacity and diversify its supply sources to further contribute to the stable supply of energy worldwide,” Inpex said.
The operator of the Ichthys LNG export plant in Australia said it would receive the volumes from Venture Global at its Naoetsu LNG import terminal as well as other terminals of customers in Japan and other countries.
Inpex is working on expanding its LNG trading business and strengthen its midstream and
downstream businesses.
To promote this initiative, the company plans to increase the volume of LNG handled by about 3 mtpa aiming to handle about 10 mtpa by 2030 combining its equity volume from current projects, it said.
CP2 LNG construction to start next year
Venture Global is already exporting LNG from its Calcasieu Pass plant in Louisiana while the company took a final investment decision on the Plaquemines LNG export plant earlier this year.
In December 2021, Venture Global said it would invest more than $10 billion in CP2 LNG which would be located next to its Calcasieu Pass liquefaction plant in Louisiana.
After that, the firm signed supply deals for the project with New Fortress Energy, ExxonMobil, EnBW, and Chevron.
CP2 LNG includes a terminal with a nameplate liquefaction capacity of 20 mtpa and a peak capacity of about 24 mtpa.
The plant would have 18 liquefaction blocks, each with a nameplate capacity of about 1.1 mtpa of LNG, but also four 200,000-cbm full containment LNG storage tanks
Venture Global expects to start construction on its third project in 2023, subject to obtaining government approvals, and to ship first LNG supplies in 2026.