Venture Global has agreed to an offtake deal with Dutch energy and commodities 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 over a period of five years, starting from this year.
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Venture Global has more than 100mtpa of capacity either already in production, currently under construction, or in the development phase.
The company commenced LNG production from its first facility in 2022 and is currently one of the largest LNG exporters in the US. Its projects include Calcasieu Pass, Plaquemines LNG and CP2 LNG, all located in Louisiana.
Venture Global CEO Mike Sabel said: “Global demand for flexible, reliable US LNG is rapidly growing, and Venture Global is proud to work with premier LNG trading companies like Vitol to provide this critical supply to the market.
“Thanks to our innovative model, we have the ability to provide our customers with short, medium and long-term LNG supply, and this agreement is another important step in diversifying the tenor of our LNG portfolio.”
Vitol has participated in LNG markets since the mid-2000s and maintains a broad range of global contracts and equity interests in the sector. Last year, the company supplied 23 million tonnes of LNG and 1,800 terawatt-hours of natural gas.
Vitol LNG global head Pablo Galante Escobar said: “Vitol is delighted to be working with Venture Global, a leading producer and supplier of LNG to world markets.
“LNG is important to many economies worldwide. Through this transaction Vitol is expanding its supply base to be able to offer diverse and reliable sources of energy to our customers and partners around the world.”
Earlier this month, Venture Global made a final investment decision and secured $8.6bn in project 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 bank market.
For phase two, commitments surpassed $19bn, building on the $34bn committed for phase one, all without requiring any additional equity investment from outside sources.
