Venture Global set to become Germany’s largest LNG supplier as it inks deal with SEFE

US LNG exporter Venture Global said it would become Germany’s largest LNG supplier as it signed a sales and purchase deal with German gas importer Securing Energy for Europe (SEFE).

Under the agreement, SEFE’s unit Wingas will purchase 2.25 million tonnes per annum of liquefied natural gas from CP2 LNG, Venture Global’s third project, for 20 years, according to a statement by the US LNG exporter.

Venture Global previously signed deals with German energy firm EnBW for about 2 million tonnes per annum of LNG supplies from its Plaquemines and CP2 facilities.

This means that Venture Global and the two German firms signed a combined 4.25 mtpa of 20-year offtake agreements.

“Venture Global is thrilled to begin a strategic partnership with SEFE, making our company the largest long-term LNG supplier to Germany,” Mike Sabel, CEO of Venture Global LNG, said in the statement.

He said that SEFE is playing a leading role in ensuring security of energy supply for not only Germany but the rest of the European gas market.

“Germany has acted decisively to diversify its energy portfolio and LNG will be a vital part of that mix as it seeks to strengthen its energy security while at the same time advancing environmental progress,” Sabel said.

Almost half of CP2 LNG volumes sold

SEFE joins other CP2 LNG customers, including ExxonMobil, Chevron, Jera, New Fortress Energy, Inpex, China Gas, and EnBW.

To date, 9.25 mtpa of the 20 mtpa nameplate capacity for CP2 has been sold with “active discussions ongoing” for the remaining capacity, according to Venture Global.

Besides offtake agreements, Australian engineering firm Worley and Venture Global recently signed a deal for the construction of the latter’s proposed LNG export terminal in Louisiana.

The two firms have agreed substantive terms for a reimbursable engineering, procurement and construction (EPC) contract for Phase 1 of the CP2 LNG terminal.

Venture Global expects to start construction on the CP2 LNG project later in 2023.

The plant will be located next to its existing Calcasieu Pass liquefaction plant in Louisiana.

It will have 18 liquefaction blocks, each with a capacity of about 1.1 mtpa of LNG, but also four 200,000-cbm full containment LNG storage tanks.

SEFE’s regas capacity

“By joining forces with Venture Global LNG, SEFE makes another important step on our mission to secure energy for German and European customers and meet the energy demand of the region,” Egbert Laege, CEO of SEFE, said in the statement.

Earlier this year, state-owned SEFE booked long-term capacity at Hanseatic Energy Hub’s planned Stade LNG import terminal in Germany.

Starting in 2027, SEFE, previously known as Gazprom Germania, plans to import at least 4 bcm per year of LNG via the terminal.

SEFE booked the capacity for 20 years and with future flexibility to switch to ammonia.

The firm also reportedly booked 3.5 bcm of regasification capacity at the Dunkirk LNG terminal in France.

In addition, commodity trader Trafigura said in December it would supply US LNG to SEFE.

SEFE also has a fleet of five chartered LNG carriers, according to its website.

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