New Fortress Secures LNG From Venture Global
Venture Global is closing in on FID for Plaquemines LNG terminal in Louisiana and has already sold 70% of its planned nameplate capacity.
New Fortress Energy (NFE) has secured a pair of 20-year Sale and Purchase Agreements with Venture Global LNG. Under the deals, Venture Global will supply 2 mtpa of LNG on a free-on-board basis from its LNG facilities in Louisiana.
Under the first agreement, NFE will purchase 1 mtpa from Venture Global’s Plaquemines LNG export facility in Plaquemines Parish, Louisiana.
“These volumes support our plan to expand and diversify our stable natural gas supply portfolio to meet the growing needs of our customers in a structurally short global natural gas market,” said Wes Edens, chairman and chief executive of New Fortress.
In addition to 1 mtpa from Plaquemines LNG, New Fortress agreed to purchase an additional 1 mtpa from Venture Global’s CP2 LNG facility, located in Cameron Parish, Louisiana, adjacent to its existing Calcasieu Pass LNG facility. In December 2021, Venture Global filed a formal application requesting authorization from the Federal Energy Regulatory Commission to site, construct, and operate the 20-mtpa nameplate capacity CP2 LNG facility.
With these agreements, Venture Global has now executed more than 80% of the long-term 20-year contracts signed by US LNG companies since 2017.
“Venture Global is proud to enter into a long-term LNG partnership with New Fortress Energy,” said Mike Sabel, chief executive of Venture Global LNG. “Our companies share a commitment to keeping energy markets well supplied while also advancing clean energy goals through the export of low-cost US LNG to emerging economies."
Venture Global is expected to take its formal final investment decision on the Plaquemines LNG terminal soon and close project financing. The company launched the construction of the plant in August 2021.
To date, Venture Global has sold 14 million tonnes of the facility’s 20-mtpa nameplate capacity. The company added it expects to announce contracts for the remaining capacity in the coming weeks.
“Building on the successful record of 29 months from FID to first LNG production at Calcasieu Pass, our company has moved forward with an expedited schedule for Plaquemines,” added Sabel. “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.”