Venture Global inks LNG offtake deals for Louisiana projects
Venture Global LNG has signed 20-year sales and purchase agreements with German electric utility EnBW to deliver 1.5 metric tons/year of LNG from two Louisiana export projects, starting from 2026, it said June 21.
The two sales and purchase agreements mark the first time a German customer has entered a long-term binding LNG deal with Venture Global.
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From 2026, EnBW will purchase LNG from the initial phase of Venture Global's 20mn mt/yr Plaquemines LNG export project, which received its final investment decision in May. Following the deal, Plaquemines LNG has locked in demand for around 16.75 mt/yr of its capacity.
EnBW will also take liquefied natural gas from Venture Global's proposed Calcasieu Pass 2 (CP2) LNG project, adjacent to the Calcasieu Pass terminal.
EnBW will evenly divide its gas supply quota from Venture Global, purchasing 750,000 mt/yr from each facility for the duration of its contract. It becomes the latest European gas supplier to pick up Venture Global's offer, joining Poland's PGNiG, Spain's Repsol, Portugal's GALP, Italy's Edison and BP and Shell in the UK.
With an eye on meeting the world's need for clean-burning gas, Venture Global aims to build another 60mn mt/yr of LNG capacity along Louisiana's Gulf Coast, beyond the 10mn mt/yr at Calcasieu Pass, with 20mn mt/yr proposals at Plaquemines LNG, CP2 LNG and Delta LNG. Venture Global is also working on carbon capture and sequestration designs, which could allow it to capture and store carbon produced from each LNG facility.
A final investment decision for Plaquemines LNG is expected "soon", Venture Global said in March. But no deadline has yet been revealed for sanctioning CP2.
Mike Sabel, CEO of Venture Global, said: "Venture Global is thrilled to welcome EnBW as a long-term customer for both our Plaquemines and Calcasieu Pass 2 LNG facilities. Our company is honoured to become a major provider of LNG to Germany, providing security of supply on a competitive, long-term basis."
Georg Stamatelopoulos, EnBW chief operating officer for generation and trading, added: "EnBW looks forward to a long-term LNG partnership with Venture Global.
"We have expanded our LNG activities step by step in the recent years. Liquefied natural gas plays a key role in the diversification of our fuels for electricity and heat generation: it opens up the possibility of new sources to secure Germany’s gas supply in the current energy transition phase and builds a bridge to a green energy supply."