U.S. project developer Venture Global and energy giant Shell signed a new long-term sales and purchase agreement (SPA) for the supply of 2 million mtpa of LNG from the Plaquemines LNG.
The parties signed the SPA for a period of 20 years.
This continues on Shell’s existing contract for 2 million tonnes per annum (mtpa) from the Calcasieu Pass LNG export terminal. Therefore, this brings Shell’s total long-term offtake from Venture Global’s facilities to 4 mtpa.
“Venture Global is honored that Shell, our first foundational customer at Calcasieu Pass, has chosen to expand its existing cooperation with our company with a second partnership at Plaquemines,” said VG CEO Mike Sabel. “Venture Global is committed to bringing low-cost US LNG online quickly, helping to keep the global market well supplied, while meeting our customers’ growing energy and climate goals. We look forward to working with Shell for many years to bring low-cost, clean American LNG to the markets that need it most.”
In addition, the company says it holds the global record for the fastest construction of a large-scale greenfield LNG facility with Calcasieu Pass. It is also actively under construction at Plaquemines LNG, which is to come online in 2024.
Global LNG demand will likely nearly double by 2040. Thus, this deal will secure additional volumes for Shell’s diverse global LNG portfolio.
Plaquemines LNG export project is located on the Mississippi River, south of New Orleans. The project is based on mid-scale liquefaction technology. It will consist of two electrically-driven trains in each block, with nine blocks for the entire facility.
When fully developed, it will have a combined export capacity of up to 20 million metric tonnes per year.