Chevron to take LNG from Cheniere, Venture Global
US major Chevron will take a combined 4mn metric tons/year of LNG from Cheniere Energy and Venture Global LNG, the two LNG providers said June 22.
Chevron has signed sales and purchase agreements (SPAs) with Cheniere subsidiary Sabine Pass Liquefaction (SPL) for 1mn mt/yr from Sabine Pass in Louisiana, and with Cheniere Marketing, also for 1mn mt/yr, pending a positive final investment decision by Cheniere for additional liquefaction capacity beyond the seven-train Corpus Christi Stage III project in Texas.
Deliveries from Sabine Pass will begin in 2026, ramp up to the full 1mn mt in 2027 and continue until mid-2042. The Cheniere Marketing offtake will begin in 2027 and continue for 15 years.
The purchase price under both SPAs will be indexed to Henry Hub, plus a fixed liquefaction fee.
“These long-term SPAs underscore the growing demand for reliable, cleaner burning LNG supply beyond 2040 and further support investment in additional LNG capacity beyond our Corpus Christi Stage III Project,” Cheniere executive vice president Anatol Feygin said.
Venture Global LNG, meanwhile, said it had signed two long-term SPAs with Chevron covering 2mn metric tons/year of LNG from two of its Louisiana export terminals.
Chevron will purchase 1mn mt/yr from each of Venture Global’s Plaquemines LNG facility and the Calcasieu Pass 2 (CP2) facility for terms of 20 years. Plaquemines has been under construction since August 2021; pending federal regulatory approval in Q2 2023, construction at CP2, adjacent to Venture Global’s recently commissioned Calcasieu Pass terminal, is expected to begin in 2023.
The agreements with Chevron are the third and fourth this week covering offtake from Plaquemines and CP2, on the heels of 1.5mn mt/yr of offtake by German utility EnBW.
“This is an outstanding addition to our growing customer portfolio at CP2,” Venture Global CEO Mike Sabel said. “Our innovative and proven approach for the deployment of LNG trains enables us to deliver energy to our customers faster and at the lowest cost.”
Chevron’s offtake from both Cheniere and Venture Global will help it deliver affordable, reliable and cleaner energy to meet long-term demand, said Colin Parfitt, Chevron’s vice president, midstream.
“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,” he said.