VENTURE GLOBAL ANNOUNCES NEW SALES AGREEMENTS FOR PLAQUEMINES AND CP2 LNG, RELEASES UPDATE ON PRE-FID MILESTONES

Rhea-AI Summary

On March 16, 2022, Venture Global LNG announced two long-term Sales and Purchase Agreements (SPAs) with New Fortress Energy (NFE), each for 1 million tonnes per annum (MTPA). This marks the first SPA for the CP2 LNG facility, set to begin construction in 2023. Venture Global now has over 80% of long-term contracts signed by US LNG companies since 2017. The company is moving towards a formal Final Investment Decision (FID) for Plaquemines LNG, having already sold 14 million tonnes of its 20 MTPA capacity.

Positive

• Executed two long-term SPAs with NFE for 2 MTPA total capacity.
• First SPA for the CP2 LNG facility, indicating progress in project timelines.
• Over 80% of long-term contracts signed by US LNG companies since 2017.
• Plaquemines LNG nearing FID with 14 million tonnes sold out of 20 million tonnes capacity.

Negative

• None.

ARLINGTON, Va., March 16, 2022 /PRNewswire/ -- Today, Venture Global LNG announced that it has executed two new long-term 20-year Sales and Purchase Agreements (SPAs) with New Fortress Energy Inc. (NASDAQ: NFE), including 1 million tonnes per annum (MTPA) from Plaquemines LNG and 1 MTPA from CP2 LNG. This is the first SPA for the CP2 LNG facility, which the company expects to commence construction on in 2023. With these agreements, Venture Global has now executed over 80% of long-term 20-year contracts signed by US LNG companies since 2017. 

"Venture Global is proud to enter into a long-term LNG partnership with New Fortress Energy. Our companies share a commitment to keeping energy markets well supplied while also advancing clean energy goals, through the export of low-cost US LNG to emerging economies," said Mike Sabel, Chief Executive Officer (CEO) of Venture Global LNG. "The CP2 LNG facility, adjacent to Calcasieu Pass, will build on our vision of making Louisiana an international hub for innovation to enhance global energy security."

Today, the company is also announcing several milestones in its pre-FID activities for Plaquemines LNG:

• Expected to soon take formal FID and close project financing.
• Launched construction in August 2021 due to historic market demand and robust financial support for the project.
• Sold 14 million tonnes of the 20 MTPA nameplate capacity. The company expects to announce contracts for the remaining capacity in the coming weeks.
• Awarded engineering and procurement contracts to world class companies including KZJV, Baker Hughes, UOP Honeywell and CB&I.

"In today's global market, execution and speed matter, and Venture Global is uniquely positioned to quickly deliver US LNG capacity to meet the world's growing demand for energy," said Mike Sabel, CEO of Venture Global. "With that in mind-and building on the successful record of 29 months from FID to first LNG production at Calcasieu Pass- our company has moved forward with an expedited schedule for Plaquemines. While we conclude the project financing process, we have taken a number of steps to accelerate our project, including the award of major EPC contracts and launching construction in the fall of 2021."

About Venture Global LNG

Venture Global is a long-term, low-cost provider of U.S. LNG sourced from resource rich North American natural gas basins. Venture Global's first facility, Calcasieu Pass, commenced producing LNG in January 2022.  The company is also constructing or developing an additional 60 MTPA of production capacity in Louisiana to provide clean, affordable energy to the world. The company is developing Carbon Capture and Sequestration (CCS) projects at each of its LNG facilities.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/venture-global-announces-new-sales-agreements-for-plaquemines-and-cp2-lng-releases-update-on-pre-fid-milestones-301503967.html

SOURCE Venture Global LNG

FAQ

What recent agreements did New Fortress Energy (NFE) enter into?

New Fortress Energy executed two long-term Sales and Purchase Agreements with Venture Global LNG, each for 1 million tonnes per annum.

When is construction expected to start for the CP2 LNG facility?

Construction for the CP2 LNG facility is expected to commence in 2023.

How much LNG capacity has Venture Global LNG sold for Plaquemines LNG?

Venture Global LNG has sold 14 million tonnes of its 20 million tonnes capacity for the Plaquemines LNG facility.

What percentage of contracts have US LNG companies signed since 2017?

Venture Global LNG has executed over 80% of long-term 20-year contracts signed by US LNG companies since 2017.

What is the significance of the SPAs announced by Venture Global LNG?

The SPAs signify a strategic partnership with New Fortress Energy and enhance Venture Global's project execution timeline.