Venture Global LNG Inc. has signed a deal to supply Paris-based utility Électricité de France SA (EDF) with super-chilled natural gas for 20 years from its proposed export terminal in Plaquemines Parish, LA.
Under a sales and purchase agreement (SPA) announced late Tuesday, EDF will purchase 1 million metric tons/year (mmty) of liquefied natural gas (LNG) from the facility on a free-on-board basis for a 20-year term when it enters service. Under the SPA model, Venture global purchases the natural gas, liquefies it and then transfers the fuel to buyers at the loading dock.
The announcement comes at a time of unprecedented global gas supply and historically low prices across the world that have created a competitive market for sanctioning U.S. LNG projects and made buyers less inclined to sign long-term deals.
Venture Global’s Plaquemines LNG facility would produce 20 mmty. Construction of the facility is slated to begin this year. The company already has sold 2.5 mmty to Poland’s state-owned natural gas company under a 20-year SPA.
Venture Global also is developing the 10 mmty Calcasieu Pass LNG terminal, which is currently under construction in Cameron Parish, LA. It also has proposed the 20 mmty Delta LNG facility, to be sited next to Plaquemines LNG.