Venture Global Signs 20-Year LNG Sales Deal With Chevron
North American liquified natural gas (LNG) producer Venture Global has executed two long-term Sales and Purchase Agreements (SPAs) for the purchase of 2 million tons per annum of LNG for 20 years.
Venture Global said that, under the agreements, Chevron would purchase 1 MTPA from the Plaquemines LNG facility and 1 MTPA from CP2 LNG.
Plaquemines LNG has been under full construction since August of 2021 and the construction of CP2 LNG is expected to begin in 2023.
“Venture Global is delighted to begin a long-term LNG agreement with Chevron, one of the world’s premier integrated energy companies.
“This is an outstanding addition to our growing customer portfolio at CP2. Our innovative and proven approach to the deployment of LNG trains enables us to deliver energy to our customers faster and at the lowest cost. As we prepare to roll out trains number 55 through 90 at CP2, we are honored that this competitive advantage has been recognized by Chevron,” said Venture Global CEO Mike Sabel.
“Our agreements with Venture Global allow Chevron to deliver affordable, reliable, and ever cleaner energy to meet long-term demand.
“This is part of Chevron’s strategy to connect and strengthen relationships across the natural gas value chain – from natural gas production and lower carbon initiatives to transportation, marketing, and delivery to the customers who need it most,” Colin Parfitt, Chevron Vice President of Midstream, stated.
As for the two LNG facilities, Plaquemines LNG is an export facility in Plaquemines Parish, Louisiana, some 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.
The CP2 LNG project will entail an LNG terminal with a nameplate liquefaction capacity of 20 million metric tons per annum of LNG and a peak capacity of approximately 24 MTPA.
The CP2 LNG terminal will be located on an approximately 546-acre site in Cameron Parish, Louisiana. The pipeline for the terminal will originate in Jasper County, Texas, and feed natural gas to the proposed LNG facility in Cameron Parish, Louisiana.
Venture Global’s first facility, Calcasieu Pass, began producing LNG in January 2022. The company is also constructing or developing an additional 60 MTPA of production capacity in Louisiana. All of Venture Global’s LNG facilities will have carbon capture and sequestration (CCS) projects as well.
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