GLNG: Venture Global expands supply partnership with Shell

Venture Global LNG announced on March 7 that it had struck a new long-term sales and purchase agreement (SPA) with Shell for offtaking from its proposed Plaquemines liquefaction terminal on Louisiana’s Gulf Coast.
The 20-year deal covers 2mn tonnes per year and brings Shell’s total long-term offtake commitments from Venture Global’s terminals to 4mn tpy. Shell’s existing contract with Venture Global covers 2mn tpy from its newly built Calcasieu Pass LNG terminal, also in Louisiana, which shipped its first cargo at the start of March.
“Venture Global is committed to bringing low-cost US LNG online quickly, helping to keep the global market well supplied, while meeting our customers’ growing energy and climate goals,” stated Venture Global’s CEO, Mike Sabel.
The announcement came on the same day that Shell announced its intention to exit all of its Russian oil and gas investments in a phased manner in response to Russia’s invasion of Ukraine. Shell is the world’s largest trader of LNG.
Meanwhile, the European Union has unveiled plans to reduce its Russian gas imports by two-thirds within a year. This push will be a boon to US LNG producers, including Venture Global, as they advance plans to expand their liquefaction capacity.
Another US LNG producer, Cheniere Energy, is also moving forward with its latest expansion project. On March 7, the company awarded a lump-sum turnkey (LSTK) engineering, procurement and construction (EPC) contract to Bechtel for the Stage III expansion at its Corpus Christi LNG terminal in Texas.