Venture Global has reached a purchase agreement with Dutch energy and raw materials company Vitol for the supply of approximately 1.5 million tonnes per annum (mtpa).
Under the terms of the agreement, Venture Global will supply liquefied natural gas (LNG) to Vitol for a period of five years, starting this year.
Venture Global has over 100 mtpa of capacity either in production, currently under construction or in the development phase.
The company began LNG production from its first facility in 2022 and is currently one of the largest US LNG exporters. Its projects include Calcasieu Pass, Plaquemines LNG and CP2 LNG, all located in Louisiana.
Mike Sabel, CEO of Venture Global, said: “Global demand for flexible and reliable US LNG is growing rapidly, and Venture Global is proud to work with leading LNG trading companies like Vitol to provide this critical supply to the market.
“Thanks to our innovative model, we have the ability to offer our customers short, medium and long-term LNG supply, and this agreement is another important step in diversifying the term of our LNG portfolio.”
Vitol has been involved in the LNG markets since the mid-2000s and maintains a wide range of global contracts and equity stakes in the sector. Last year, the company supplied 23 million tons of LNG and 1,800 terawatt-hours of natural gas.
Vitol LNG Global Director Pablo Galante Escobar said: “Vitol is delighted to be working with Venture Global, a leading LNG producer and supplier to global markets.
“LNG is important to many economies around the world. Through this transaction, Vitol is expanding its supply base to be able to offer diverse and reliable energy sources to our customers and partners around the world.”
Earlier this month, Venture Global made a final investment decision and secured $8.6 billion in financing for the second phase of its CP2 LNG project. Combined with the phase one financing announced last July, this represents the largest stand-alone project financing in the US banking market.
For the second phase, commitments exceeded $19 billion, building on the $34 billion committed for the first phase, all without requiring any additional capital investment from external sources.
“Venture Global Signs Five-Year LNG Purchase Agreement with Vitol” was originally created and published by Offshore Technology, a brand owned by GlobalData.
The information contained on this site has been included in good faith for general information purposes only. It is not intended to be advice on which you should rely, and we make no representation or warranty, whether express or implied, as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action based on the content on our site.