Shell extends Venture Global LNG off-take
Shell has signed a 20-year sales and purchase agreement (SPA) with Venture Global LNG to purchase 2mn mt/yr of LNG from the forthcoming Plaquemines LNG facility, Venture Global said March 7.
It is Shell's second SPA with Venture Global, doubling the UK-based major's long-term offtake from its Louisiana LNG export terminals and building on an existing 2mn mt/yr deal from Venture Global's 10mn mt/yr Calcasieu Pass terminal in Cameron Parish, Louisiana, which shipped its first cargo last week.
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Early construction works at the 20mn mt/yr Plaquemines LNG facility started last year, but the terminal is not expected to reach commercial operations until 2024. Nevertheless, Venture Global said the deal would help Shell "secure additional volumes" for its global LNG portfolio. "Venture Global is honoured that Shell, our first foundational customer at Calcasieu Pass, has chosen expand its existing cooperation with our company with a second partnership at Plaquemines," said the company's 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," Sabel said.