US-based Venture Global LNG signed LNG SPAs in May and Mar for Plaquemines LNG and CP2 facility

US-based Venture Global LNG signed LNG SPAs in May and Mar for Plaquemines LNG and CP2 facility. Early this week US-based Venture Global LNG and PETRONAS LNG Ltd. (“PLL”), a subsidiary of the Malaysian state-owned oil and gas company, PETRONAS, announced the execution of a new 20-year Sales and Purchase Agreement (SPA) for the purchase of 1 mil mt/year of LNG from Venture Global’s Plaquemines LNG facility. With this agreement, Venture Global has contracted 16 mtpa for 20-year from the 20 MPTA nameplate capacity at Plaquemines LNG. Just a day before, Venture Global LNG announced the execution of two new long-term SPAs with ExxonMobil LNG Asia Pacific (EMLAP) for the sale of 2 mtpa of LNG. Under the agreements, the ExxonMobil affiliate will purchase 1 mtpa from the Plaquemines LNG facility as well as 1 mtpa from the CP2 LNG facility (CP2). SPA with EMLAP was the second supply agreement for CP2, which is expected to commence construction in 2023. Both facilities will replicate the same successful innovative design seen in operation today at Calcasieu Pass, where speed of execution resulted in the production of first LNG only 29 months after FID. In March, Venture Global LNG announced execution of two long-term 20-year SPAs with New Fortress Energy Inc., including 1 mtpa from Plaquemines LNG and 1 mtpa from CP2 LNG. The SPA with New Fortress Energy Inc. was the first one for the CP2 LNG facility. In March again, Venture Global LNG announced the execution of a new long-term 20-year SPA with Shell NA LNG LLC (Shell) for the supply of 2 mtpa of LNG from Venture Global’s Plaquemines LNG export facility. This new deal 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. In December last year, Venture Global LNG and CNOOC Gas & Power Group Co., Ltd., a wholly owned subsidiary of China National Offshore Oil Corporation (CNOOC), announced the execution of a 20-year SPA. This marks the first LNG supply agreement signed by a US exporter with CNOOC, China’s largest importer of LNG. Under the deal, Venture Global will supply 2 mtpa of LNG on a free on board (FOB) basis from its Plaquemines LNG export facility, in Plaquemines Parish, Louisiana. In addition, CNOOC Gas & Power also signed SPA for 1.5 mtpa of LNG from Venture Global’s Calcasieu Pass LNG facility for a shorter duration. In November another Chinese major China Petroleum & Chemical Corp. (Sinopec) announced the signing of two 20-year SPA for the supply of a total of 4 mtpa of LNG from Venture Global’s Plaquemines LNG export facility. In addition, UNIPEC, a Sinopec subsidiary had agreed to purchase 3.5 mtpa of LNG from Venture Global’s Calcasieu Pass LNG facility for a shorter duration.