Venture Global LNG Inc. has executed a long-term agreement with JERA Co. Inc. for sale of 1 million tonnes/year (tpy) of LNG from Venture Global’s 20-million tpy CP2 LNG plant for 20 years.
Federal permitting of CP2, Venture Global’s third project, is progressing and construction is slated to begin this year to meet a second-quarter 2026 in-service date (OGJ Online, Jan. 23, 2023). To be sited in Cameron Parish, La., it will employ the same modular construction used at Venture Global’s 10-million tpy Calcasieu Pass LNG plant (OGJ Online, Apr. 29, 2022).
The company says CP2 LNG will be able to produce 28 million tpy under optimal conditions, with the gas delivered on CP Express natural gas pipeline. Over a third of the project’s nameplate capacity is sold and discussions are ongoing for the remainder, the company said. Agreements have been entered with affiliates of New Fortress Energy Inc., ExxonMobil Corp., Chevron Corp., EnBW Energie Baden-Württemberg AG, and Inpex Energy Trading Singapore Pte. Ltd. (OGJ Online, Dec. 27, 2022).
This deal follows JERA Global Markets’ purchase of the inaugural commissioning cargo of LNG exported from Venture Global’s first project, Calcasieu Pass (OGJ Online, Apr. 29, 2022).
“LNG procurement competition has been intensifying and thus, stable procurement of LNG in a timely manner in line with the domestic electricity supply-demand situation is needed to secure a stable supply of energy in Japan,” said Sunao Nakamura, senior managing executive officer, optimization of JERA. “This is a destination free FOB contract, which enables JERA to secure LNG in a high flexible manner and is expected to help with our capability to respond to volatility in the domestic electricity supply and demand,” he said.