Venture Global, ExxonMobil Sign LNG Supply Pacts
An ExxonMobil Asian affiliate will take LNG from Venture Global’s Plaquemines and CP2 facilities currently under construction.
Venture Global LNG has signed a pair of new long-term sales and purchase agreements with ExxonMobil LNG Asia Pacific for the sale of 2 mtpa of LNG. Under the agreements, the ExxonMobil affiliate will purchase 1 mtpa from the Plaquemines LNG facility as well as 1 mtpa from the CP2 LNG facility. This is the second supply agreement for CP2, which is expected to begin construction in 2023. New Fortress Energy agreed in March to purchase 1 mtpa for a term of 20 years.
Both facilities will replicate the same design seen in operation today at Calcasieu Pass, where work execution resulted in the production of first LNG only 29 months after final investment decision. The ExxonMobil deal will help advance both the Plaquemines and CP2 projects.
Venture Global's first facility, Calcasieu Pass, began producing LNG in January 2022. The company is also constructing or developing an additional 60 mtpa of production capacity in Louisiana and is developing carbon capture and sequestration projects at each of its LNG facilities.
The US is expected to surpass Australia and Qatar as the world’s largest exporter of LNG sometime this year, delivering more than 12.2 Bcf/D. Demand for US LNG has surged since the Russian invasion of Ukraine, which sent supply shockwaves across the global natural gas market.
ExxonMobil has its own LNG liquefaction projects stateside. The company is a 30% partner with QatarEnergy in the $10 billion Golden Pass LNG facility currently under construction near Sabine Pass, Texas. The facility is expected to start producing in 2024.