Venture Global pens long-term LNG supply deals with ExxonMobil

US LNG player Venture Global LNG has signed two long-term liquefied natural gas supply deals with a unit of compatriot energy giant ExxonMobil.

Under the first LNG sales and purchase agreement, Venture Global would supply about 1 mtpa to ExxonMobil LNG Asia Pacific (EMLAP) from the Plaquemines project in Louisiana.

In addition to this deal, ExxonMobil’s unit agreed to purchase 1 mtpa of LNG from Venture Global’s planned CP2 LNG facility, located in Cameron Parish, Louisiana.

Venture Global did not reveal the duration of the long-term deals or pricing details.

These deals follow similar contracts Venture Global signed with US LNG player New Fortress Energy in March.

The firm said then that NFE would buy 1 mtpa each from Plaquemines and CP2 LNG for a period of 20 years.

CP2 LNG construction to start in 2023

Venture Global has this year awarded several contracts for its Plaquemines LNG export project which it expects to launch in 2024. It also 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.

It has yet to take a formal final investment decision on this project.

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 10 mtpa Calcasieu Pass liquefaction plant in Louisiana, which should start full LNG production later this year.

Venture Global confirmed on Tuesday it expects to start construction on the CP2 LNG facility in 2023.

Both Plaquemines and CP2 LNG will replicate the same design seen in operation today at Calcasieu Pass, where speed of execution resulted in the production of first LNG only 29 months after FID.

“Venture Global is deeply honored that ExxonMobil has chosen to collaborate with our company across both of our next projects: Plaquemines and CP2,” Mike Sabel, CEO of Venture Global, said in the statement.

“As a global LNG leader, ExxonMobil’s support for Venture Global’s innovation and engineering execution is a defining moment for our combined teams and the wider LNG market,” he said.

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