US-based Venture Global LNG has signed a long-term sales and purchase agreement (SPA) with Japanese energy major JERA.
The agreement contemplates the sale of one million tonnes per annum (mtpa) of liquified natural gas (LNG) from Venture Global’s CP2 LNG project for two decades.
The LNG terminal is Venture Global’s third project, which will be situated on a 546-acre site in Cameron Parish, Louisiana, and construction is scheduled to start later this year.
CP2 LNG terminal’s nameplate export capacity will be 20mtpa, with a peak export capacity of about 24mtpa.
Venture Global said it has already finalised SPAs for over a third of the 20mtpa nameplate facility’s capacity and negotiations for the remaining capacity are ongoing.
JERA senior managing executive officer of optimisation Sunao Nakamura said: “LNG procurement competition has been intensifying and thus, stable procurement of LNG in a timely manner in line with the domestic electricity supply-demand situation is needed to secure a stable supply of energy in Japan.
This is a destination-free free on board contract, which is anticipated to improve JERA’s capacity to react to fluctuations in the supply and demand for domestic electricity.
Venture Global LNG CEO Mike Sabel said: “Japan has taken a pragmatic approach to ensuring its energy security while advancing environmental progress.
“We are honoured to supply our growing customer base in Japan with a clean and reliable source of lower carbon energy and look forward to supporting JERA in its efforts to bring LNG to the region for many years to come.”
Last month, Venture Global secured $7.8bn financing to develop Phase 2 of its Plaquemines LNG project in Louisiana.