Fresh LNG deal enables US to give European and Ukrainian energy security a leg up

Given the energy security challenges that may be in store for Europe due to the ongoing Russia-Ukraine conflict, Venture Global, a U.S. producer of liquefied natural gas (LNG) sourced from North American basins, is coming to the rescue, thanks to a new LNG agreement with D.Trading, the commodity trading arm of DTEK Group, which will enable it to bolster energy security in both Ukraine and Eastern Europe.

The two players signed on the dotted line to execute comprehensive heads of agreement (HOA) for the supply of U.S. LNG to Ukraine and Eastern Europe on the sidelines of a conference, which took place in Berlin on June 11-12, 2024.

Ivan Geliukh, D.Trading’s CEO, commented: “At D.Trading we believe that this heads of agreement marks a significant milestone in our commitment to support Ukraine and the EU in the process of decarbonization, as well as energy security for Europe. This partnership underscores a strong dedication to ensuring access to sustainable energy today and in the future”.

With European energy security said to be at its core, the HOA between D.Trading and Venture Global entails supporting near medium to long-term energy security needs for Ukraine and the broader Eastern European region.

In addition, the deal encompasses cooperation on opportunities to access regasification terminal capacity and gas pipeline capacity that provide an integrated and flexible transport path to support the region’s energy security.

Mike Sabel, CEO of Venture Global, highlighted: “Venture Global is proud to partner with DTEK ’s subsidiary D.Trading to support Ukrainian and Eastern European energy security by supplying short-term and long-term U.S. LNG from our Plaquemines and CP2 facilities. President Biden has committed to increasing LNG supply into Europe and Venture Global is pleased to be in a position to continue to support these efforts.

“With this landmark agreement, we will help bolster Ukraine’s security of natural gas supply, aid continued recovery and economic growth in the region, and further strengthen European energy security.”

Venture Global’s first facility, Calcasieu Pass in Cameron Parish, Louisiana, south of Lake Charles, began producing its first LNG in January 2022. The 1,000-acre site is located where the Calcasieu Ship Channel meets the Gulf of Mexico. This plant is designed to export 10 metric tonnes per year (mtpa) of LNG per year. However, an additional 60 million mtpa of production capacity is being developed in Louisiana.

The second facility, Plaquemines LNG, is under construction and expected to produce its first LNG in 2024. With an export capacity of up to 20 million metric tonnes per year, the 630-acre Plaquemines LNG site on the Mississippi River is an LNG export facility in Plaquemines Parish, Louisiana, about 20 miles south of New Orleans.

The firm’s third facility, CP2 LNG, received a positive final environmental impact statement (FEIS) from the Federal Energy Regulatory Commission (FERC) in July 2023. The CP2 LNG terminal facility will be on Monkey Island between the Calcasieu Ship Channel and Calcasieu Pass. The CP Express pipeline will originate in Jasper County, Texas, and feed natural gas to the proposed LNG facility in Cameron Parish.

With a nameplate liquefaction capacity of 20 million metric tonnes per annum of LNG and a peak capacity of approximately 24 mtpa, the CP2 LNG terminal will be adjacent to the Calcasieu Pass LNG facility in Cameron Parish. Venture Global is developing carbon capture and sequestration (CCS) projects at its LNG facilities to curb the carbon footprint from operations.

A few months ago, the U.S. player made a move to get a hold of a fleet of nine LNG-powered vessels, currently under construction in South Korea, to advance the integration of its business across the entire LNG supply chain.