US-Greek LNG deal opens new route for energy diversification in Europe

Venture Global, a U.S. producer of liquefied natural gas (LNG) sourced from North American basins, has signed a binding multi-year terminal use agreement (TUA) with Greek gas player Gastrade, to supply markets in Central and Eastern Europe (CEE) with LNG from the former’s Louisiana terminals.

The U.S. player has secured approximately 1 million tonnes per annum (mtpa) of LNG regasification capacity at the new Alexandroupolis LNG receiving terminal in Greece for five years, starting in 2025. This will amount to approximately 25% of the total terminal capacity or around 12 cargoes annually. 

“This move further integrates our business by growing our assets across the LNG supply chain including LNG production, shipping and regasification. As a major point of entry for LNG into Central and Eastern Europe, this strategically important infrastructure will be a game changer for the region’s ability to diversify their energy and access a secure and reliable energy supply. Venture Global is proud to support these efforts as a strategic partner with volumes from both Plaquemines LNG and the future CP2 LNG,” said Venture Global CEO Mike Sabel.

Venture Global believes the Alexandroupolis LNG terminal and the South-North Vertical Corridor will be essential to boosting energy security in this part of Europe as they will allow alternative supplies of natural gas to be imported into the region. 

The Greek terminal features the floating storage regasification unit (FSRU) Alexandroupolis. Following a 10-month conversion from an LNG carrier at Seatrium’s shipyard in Singapore, the vessel reached Greece in late 2023. The first LNG cargo was received in February.

The FSRU was to be connected to the National Natural Gas Transmission System (NNGΤS) of Greece via a 28-kilometer pipeline developed by Corinth Pipeworks, a steel pipes segment of Cenergy Holdings. Saipem recently completed its portion of subsea work related to connecting the FSRU to the transmission system, with Maritime Developments providing support in pipelaying operations.

Meanwhile, Venture Global is making headway with its 20 million mtpa Plaquemines LNG terminal development in Louisiana, United States. The firm recently got clearance from the Federal Energy Regulatory Commission (FERC) for several items it needs to handle before starting LNG production, expected in mid-2024.