Venture Global LNG Inks New 20-year SPA With Shell

Venture Global LNG Inks New 20-year SPA With Shell
Venture Global LNG has extended its cooperation with Shell through a new 20-year deal for the supply of LNG from Plaquemines LNG plant.

Venture Global LNG has strengthened its cooperation with Shell as the latter has agreed to purchase another 2 million tons per annum (mtpa) of LNG from the Plaquemines export plant. The new Sales and Purchase Agreement (SPA) has a 20-year term.

This new deal builds on Shell's existing contract for 2 mtpa from the Calcasieu Pass LNG export terminal that recently dispatched its first cargo of the chilled fuel. The new deal brings Shell's total long-term offtake from Venture Global's facilities to 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.

"Venture Global is committed to bringing low-cost U.S. LNG online quickly, helping to keep the global market well supplied, while meeting our customers' growing energy and climate goals. 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 added.

Venture Global now holds the global record for the fastest construction of a large-scale greenfield LNG facility with Calcasieu Pass and is actively under construction at Plaquemines LNG, which is expected to come online in 2024.

Global LNG demand is expected to nearly double by 2040. This deal will secure additional volumes for Shell's leading and diverse global LNG portfolio.

The Plaquemines LNG export plant is located on a 630-acre site on the Mississippi River, with approximately 1.3 miles of river frontage, in Plaquemines Parish, Louisiana, approximately 20 miles south of New Orleans. When fully developed, Plaquemines LNG will have an export capacity of up to 20 million metric tons per year.

Venture Global LNG is currently constructing a total of 60 mtpa of production capacity in Louisiana and is also developing Carbon Capture and Sequestration (CCS) projects at each of its LNG facilities.

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