Venture Global and ExxonMobil sign LNG supply pacts

Venture Global LNG has signed a pair of new long-term sale and purchase agreements with ExxonMobil LNG Asia Pacific for the sale of 2 mtpa of LNG. Under the agreements, the ExxonMobil subsidiary will purchase 1 mtpy from the Plaquemines LNG facility as well as 1 mtpy from the CP2 LNG facility. This is the second supply deal for CP2, with construction expected to begin in 2023. New Fortress Energy agreed in March to purchase 1 mtpy for a 20-year term.

Both facilities will replicate the same design seen today at Calcasieu Pass, where the execution of the works resulted in the production of the first LNG only 29 months after the final investment decision. The ExxonMobil deal will help advance the Plaquemines and CP2 projects.

Venture Global’s first facility, Calcasieu Pass, began producing LNG in January 2022. The company is also building or developing an additional 60 mtpy of production capacity in Louisiana and developing carbon capture and sequestration projects in each of its LNG facilities.

The United States is expected to overtake Australia and Qatar as the world’s top LNG exporter this year, shipping more than 12.2 billion cubic feet per day. Demand for US LNG has increased since the Russian invasion of Ukraine, which sent shockwaves through supply in the global natural gas market.

ExxonMobil has its own LNG liquefaction projects in the United States. The company is a 30% partner of QatarEnergy in the $10 billion Golden Pass LNG facility currently under construction near Sabine Pass, Texas. The facility is expected to begin production in 2024.