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BP Secures 20-Year LNG SPA with Venture Global’s Calcasieu Parish Project
Venture Global Calcasieu Pass LLC is edging closer to meeting its capacity commitments for one of two Louisiana natural gas export projects in development, after announcing Monday that it has a 20-year supply agreement with BP plc.
Under the sales and purchase agreement (SPA) with the Venture Global LNG Inc. subsidiary, BP would receive 2 million metric tons/year (mmty) of liquefied natural gas (LNG) on a free-on-board basis.
The 10 mmty Calcasieu Parish project, tentatively scheduled to begin operations in 2022, now has 20-year SPAs for 6 mmty of capacity, said Venture Global co-CEOs Mike Sabel and Bob Pender.
The Calcasieu Parish SPAs already in hand for 20 years are also with units of three other big European-based operators: Royal Dutch Shell plc, Edison SpA and Galp. The 10 mmty project is being developed on a 1,000-acre site at the intersection of the Calcasieu Ship Channel and the Gulf of Mexico.
The SPA with Shell NA LNG LLC is for 2 mmty. Under the SPA with Portugal’s Galp announced earlier this month, the company would take 1 mmty. Italy’s Edison signed its SPA last September for 1 mmty.
“As we finalize our arrangements for Calcasieu Pass and proceed toward financing, we have now begun to execute binding commitments for our Plaquemines project, which will also supply low-cost, long-term LNG to our global customers,” the co-CEOs said.
Venture Global is developing LNG export terminals in Cameron Parish and Plaquemines Parish that together would have estimated capacity of 30 mmty.
The 20 mmty Plaquemines Parish project is underway on a 630-acre site on the Mississippi River, 30 miles south of New Orleans.
Venture Global said it has raised $525 million of capital to date to support project developments.
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