German Energy Firm Signs 20-Year Deal With Venture Global LNG

The construction of the Calcasieu Pass 2 liquefied natural gas facilities in Cameron Parish is scheduled to start this year.

Source: Getty Images

US liquefied natural gas (LNG) exporter Venture Global has signed a 20-year LNG sales and purchase agreement with Germany’s Securing Energy for Europe (SEFE) for 2.25 mtpa of LNG.

Venture Global said on 22 June that it would deliver the LNG from its Calcasieu Pass 2 (CP2) project. About half of the 20 mtpa nameplate capacity for CP2 has been sold, with about a third of the offtake agreements being with German buyers, according to the Virgina-based LNG exporter.

“Venture Global is thrilled to begin a strategic partnership with SEFE, making our company the largest long-term LNG supplier to Germany,” said Mike Sabel, CEO of Venture Global LNG. “SEFE is playing a leading role in ensuring the security of energy supply for not only Germany but the rest of the European gas market. Germany has acted decisively to diversify its energy portfolio, and LNG will be a vital part of that mix as it seeks to strengthen its energy security while at the same time advancing environmental progress. We are honored to support a key US ally in each of these efforts.”

The company said the deal sets Venture Global up to become the largest LNG supplier to the European nation.

“By joining forces with Venture Global LNG, SEFE makes another important step on our mission to secure energy for German and European customers and meet the energy demand of the region. In delivering a substantial amount of the contracted capacity of CP2 LNG to European customers, we contribute to the further diversification and sustainability of the European energy supply,” said Egbert Laege, CEO of SEFE.

Construction on the CP2 LNG project is expected to begin in 2023. Venture Global, in May, awarded Australian contractor Worley the engineering, procurement, and construction contract for the first phase of the Louisiana-sited project.