• Natural Gas News

    Venture Global inks two more LNG sales deals

Summary

First SPA for CP2, Plaquemines LNG draws closer to formal FID. [Image: Venture Global]

by: Dale Lunan

Posted in:

Complimentary, Natural Gas & LNG News, Americas, Liquefied Natural Gas (LNG), Corporate, Import/Export, Contracts and tenders, Political, Regulation, News By Country, United States

Venture Global inks two more LNG sales deals

US LNG developer Venture Global said March 16 it had executed two new 20-year sales and purchase agreements (SPAs) with New Fortress Energy for 1mn mt/yr from the Plaquemines LNG terminal and 1mn mt/yr from the proposed CP2 LNG project, both in Louisiana.

LNG under both SPAs will be supplied on a free-on-board basis, New Fortress said separately.

It is the first SPA for the 20mn mt/yr CP2 LNG project, which Venture Global plans to build next to its operating Calcasieu Pass terminal. Applications were filed for the project late last year with the Federal Energy Regulatory Commission, and pending approval, construction could begin in 2023.

At the 20mn mt/yr Plaquemines LNG project, where pre-construction activities began last year, the new SPA advances Venture Global towards a formal final investment decision, which is “expected soon” along with a close on project financing. A total of 14mn mt/yr of offtake is now secured, it said.

“While we conclude the project financing process, we have taken a number of steps to accelerate our project, including the award of major EPC contracts and launching construction in the fall of 2021,” Venture Global CEO Mike Sabel said of Plaquemines.

In November 2020, KBR was awarded the engineering, procurement and construction (EPC) contract for Plaquemines. In April last year, Zachry Group joined KBR in a joint venture, while earlier this year McDermott was awarded a contract to build two storage tanks for Phase 1 of the project and Baker Hughes was contracted to supply modular turbo-machinery units for Phase 1 liquefaction trains, which will be fabricated in Italy.