US LNG exporter Venture Global LNG has signed a long-term liquefied natural gas supply deal with compatriot FSRU player Excelerate Energy.
Under the 20-year sales and purchase agreement, Excelerate will buy 0.7 million tonnes per annum of LNG on a free on board (FOB) basis from the Plaquemines LNG facility in Plaquemines Parish, Louisiana, according to a joint statement.
Venture Global is already exporting LNG from its Calcasieu Pass plant in Louisiana, while the company took a final investment decision last year on the first phase of the Plaquemines project with a capacity of 13.3 mtpa and the related pipeline.
The company previously said it had executed the majority of the 20-year sales and purchase agreements (SPAs) for the full 20 mtpa Plaquemines project, including the second phase.
It recently signed SPAs for both Plaquemines LNG and the CP2 LNG export facility with China Gas.
On the other hand, Exclerate operates ten floating storage and regasification units (FSRUs), one of the world’s largest fleets of such vessels. These units are located around the globe, including in Europe.
Excelerate also ordered one FSRU in South Korea last year.
“Venture Global is thrilled to launch this new collaboration with Excelerate, a leader in the FSRU industry, as their inaugural long-term LNG supplier,” Mike Sabel, CEO, of Venture Global, said.
Steven Kobos, CEO of Excelerate, said this agreement is an “important milestone” for Excelerate as the company continues to execute its growth strategy.
“Building a diversified LNG supply portfolio with strong partners like Venture Global will allow us to offer more flexible and cost-effective products to existing and new customers in downstream markets,” he said.