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Venture Global Secures Another SPA for Calcasieu Pass LNG Export Project

An export facility under development in Cameron Parish, LA, by Venture Global Calcasieu Pass LLC has secured a 20-year sales and purchase agreement (SPA) with Portugal’s Galp to supply 1 million metric tons/year (mmty) of liquefied natural gas (LNG) over 20 years.

The Venture Global LNG Inc. subsidiary said Galp agreed to purchase LNG on a free on board basis, or FOB, beginning when the export project ramps up. If a final investment decision is made and customer conditions are met, the facility could be in commercial operation in 2022.

The SPA with Galp “follows the recent announcements of our binding 20-year sales agreements with Shell NA LNG LLC and Edison SpA, now totaling 4 mmty,” said co-CEOs Mike Sable and Bob Pender.

Shell modified its existing 20-year SPA earlier this year and agreed to double its purchases to 2 mmty. The original SPA was reached in February 2016. Italy’s Edison signed its SPA last September for 1.0 mmty.

Venture and TransCameron Pipeline LLC in 2015 applied at the Federal Energy Regulatory Commission to construct the Calcasieu terminal and associated natural gas pipeline laterals [CP15-550]. Also in 2015, the Department of Energy authorized Venture to export up to 620 Bcf/year from Calcasieu Pass to free trade agreement countries.

Venture Global LNG is developing the 10 mmty Calcasieu Pass facility on a nearly 1,000-acre site at the intersection of the Calcasieu Ship Channel and the Gulf of Mexico.

A second project, the proposed 20 mmty Venture Global Plaquemines LNG facility, would be built in Plaquemines Parish, LA, on a 630-acre site on the Mississippi River, about 30 miles south of New Orleans.

The Plaquemines facility is expected to include up to three marine loading berths capable of receiving oceangoing carriers with capacity of up to 185,000 cubic meters. A combined-cycle gas turbine power plant with generating capacity of 720 MW also is to be developed with a similar plant added in a second phase.

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