Venture Global Nets Additional LNG Commitment From PGNiG
Polish oil company will take an additional 2 mtpa for 20 years.
Venture Global LNG and PGNiG (Polish Oil and Gas Company) have finalized an agreement under which PGNiG will purchase an additional 2 mpta of liquefied natural gas (LNG) from Venture Global for 20 years. Cargoes will be supplied from Venture Global’s Calcasieu Pass LNG and Plaquemines LNG export facilities, both currently under development.
“Venture Global is proud to expand our existing partnership with PGNiG to provide a clean and reliable supply of American LNG to Poland,” said Mike Sabel, chief executive of Venture Global LNG. “Since 2018, our two companies have significantly increased our cooperation, nearly tripling the volume of LNG Venture Global will export to PGNiG.”
The new deal amends the existing Sales and Purchase Agreements signed by the companies in 2018, increasing the volume of LNG purchased from Calcasieu Pass LNG to 1.5 mtpa from 1.0 mtpa and the volume from Plaquemines LNG to 4 mtpa from 2.5 mpta. PGNiG said the total of 5.5 mtpa will result in approximately 7.4 Bcm of natural gas after regasification.
“The import of LNG allows PGNiG to diversify sources and routes of supply of natural gas,” said Paweł Majewski, president of the PGNiG management board. "This way we can provide Polish customers with energy security— constant and uninterrupted gas deliveries."
Venture’s Calcasieu Pass LNG export facility in Cameron Parish, Louisiana, took delivery of its first two 0.6-mtpa LNG trains last November. The facility buildout calls for a total of 18 identical trains. Once complete, the plant will export 10 mtpa. The facility is being built on a 1,000-acre site where the Calcasieu Ship Channel meets the Gulf of Mexico and is slated to begin operations during the first quarter of 2023.
The company’s Plaquemines LNG plant is being developed in Plaquemines Parish, Louisiana, about 20 miles south of New Orleans. The 630-acre site is located on the Mississippi River, with approximately 1.3 miles of river frontage. When fully developed, Plaquemines LNG will have an export capacity of up to 20 mtpa.
This past April, Venture announced a new partnership with Zachry Group in the development of the project. The agreement followed the company’s selection of KBR as the EPC contractor for the facility. KBR and Zachry Group will together, through a new joint venture, as KZJV, to execute the development, engineering, procurement, and construction under the EPC contract for Phase 1 of Plaquemines LNG.
KZJV will integrate modularized, owner-furnished equipment for the 10-mpta nameplate facility, identical to the systems being delivered and installed at the Calcasieu Pass project.
Venture plans to have carbon capture and sequestration (CCS) capacity at both facilities. The company said in May it had a “shovel-ready” plan that would result in the CCS of an estimated 500,000 tons of carbon per year from each of the two sites. It plans to compress CO2 at its sites and then transport it for injection deep into subsurface saline aquifers where it will be permanently stored. The company said the deployment of CCS technology at Calcasieu Pass would be the first of its kind for an existing LNG facility in the US.