Louisiana LNG Project Gains European Customer
Italy-based Edison, a major electricity supplier in Europe, has reached a 20-year sales and purchase agreement (SPA) to source liquefied natural gas (LNG) from Venture Global Calcasieu Pass, LLC, Venture Global announced Wednesday.
Under the SPA, Edison will purchase 1 million tons per annum of LNG from the Calcasieu Pass LNG export facility that Venture Global is developing in Cameron Parish, La., Venture Global stated. Venture Global, which noted that Edison will purchase the gas on a free on board basis, added that it expects Calcasieu Pass to start commercial operation in 2021.
Venture Global is developing the liquefaction terminal on a 930-acre site with more than a mile of deep water frontage on the Calcasieu Ship Channel near the Gulf of Mexico. According to the company’s website, the LNG production and export facility will feature nine 1.2 million ton liquefaction blocks and two 200,000 cubic meter cryogenic LNG storage tanks. In addition, it reportedly will include a marine terminal and a lateral pipeline interconnecting with major interstate and intrastate gas pipelines.
Venture Global, which is awaiting regulatory approvals for Calcasieu Pass from the U.S. Federal Energy Regulatory Commission and the U.S. Department of Energy, anticipates a final investment decision in the first half of 2018. Construction could begin in the second quarter of next year, according to the company, which has proposed another LNG project near New Orleans.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.