Venture Global LNG and EnBW executed two long-term sales and purchase agreements for 1.5 million tonnes/year (tpy) of LNG from Venture Global's Plaquemines and CP2 liquefaction plants, starting 2026.
The agreement is the first direct binding offtake agreement for long-term US LNG signed by a German company, as the country looks to diversify its energy mix, said Mike Sabel, chief executive officer of Venture Global LNG in a release June 21.
EnBW, one of the largest energy companies in Germany and Europe, will purchase 0.75 million tpy from Plaquemines LNG and 0.75 million tpy from CP2 LNG for 20 years. The deal follows those of other European companies, as PGNiG, BP, Shell, Repsol, Edison, and GALP previously signed deals with Venture Global.
In May, Venture Global made a final investment decision on the 20-million tpy Plaquemines LNG plant in Louisiana, following closing of the $13.2-billion project financing for the project's initial phase (OGJ Online, May 25, 2022). The plant is under construction and is expected to come online in 2024.
Construction of the 20-million tpy CP2 LNG plant is expected to begin in 2023.