Grain LNG, Venture Global ink terminal use agreement

UK's Grain LNG and US LNG developer Venture Global have signed a binding long-term terminal use agreement, facilitating the regasification and sale of LNG from all of Venture Global’s LNG terminals in Louisiana, including CP2 LNG, Grain LNG said on February 5. The agreement is contingent on obtaining necessary federal permits.

As per the agreement, Venture Global will have access to 3mn tonnes/year of LNG storage and regasification capacity at the Isle of Grain LNG receiving terminal for 16 years starting in 2029. This capacity is equivalent to up to 5% of the average UK gas demand.

This marks the second agreement resulting from Grain LNG’s competitive auction process initiated in September 2023. Earlier this month, Grain LNG announced a ten-year agreement with Algerian gas company Sonatrach. 

Grain LNG said that with ongoing expansion projects - Calcasieu Pass, Plaquemines LNG, and CP2 LNG - Venture Global solidifies its position as a strategic LNG supplier to Europe. The flexibility and access to Venture Global’s volumes will be crucial for the UK and Europe as they strive to replace LNG volumes from other suppliers. To date, about 75% of Venture Global’s cargoes have been exported to Europe, it added. 

The terminal can handle up to 15mn tonnes/year of LNG and regasify up to 645 GWh/day.