US player Venture Global LNG said it would supply liquefied natural gas to a unit of energy giant Shell from its planned Plaquemines LNG project as part of a new long-term deal revealed on Monday.
Under the deal, Shell NA LNG would buy two million tonnes per annum of LNG from Venture Global’s Plaquemines facility in Louisiana.
Also, this new contract builds on Shell’s existing contract for 2 mtpa from the Calcasieu Pass LNG export terminal, bringing Shell’s total long-term offtake from Venture Global’s facilities to 4 mtpa.
Calcasieu Pass recently shipped the first commissioning cargo. Once completed, Calcasieu Pass will produce about 10 mtpa of LNG from 18 modular units configured in 9 blocks. The plant is the seventh large LNG export facility in the US.
Launch in 2024
Venture Global said that Plaquemines LNG would start production in 2024 but the company has not yet announced a final investment decision on the development.
KBR and Zachry will build the first phase of the project that includes a capacity of 10 mtpa while the full project would have 20 mtpa capacity, four tanks, and three jetties.
Chart Industries recently said it had received full notice to proceed for the production of cold boxes and brazed aluminum heat exchangers for the first phase of the project.
Plaquemines LNG has binding 20-year offtake agreements with Poland’s PGNiG for 4 mtpa and France’s EDF for 1 mtpa capacity. The project also signed deals with China’s CNOOC for 2 mtpa and with Sinopec for 4 mtpa.
“Venture Global is honored that Shell, our first foundational customer at Calcasieu Pass, has chosen to expand its existing cooperation with our company with a second partnership at Plaquemines,” said Venture Global CEO Mike Sabel.
“We look forward to working with Shell for many years to bring low-cost, clean American LNG to the markets that need it most,” he said.