Venture Global and Shell agree to increase LNG purchase to 2 MMtpy
WASHINGTON, D.C. – Venture Global LNG, Inc. (“Venture Global LNG”) announced that its subsidiary, Venture Global Calcasieu Pass, LLC (“Venture Global Calcasieu Pass”), has agreed with Shell NA LNG LLC (“Shell”) to increase their existing sales and purchase agreement (“SPA”), under which Shell will now purchase 2 MMtpy of liquefied natural gas (“LNG”) from Venture Global Calcasieu Pass’s LNG export facility under development in Cameron Parish, Louisiana.
|Venture Global site Venture Global LNG will be a long-term, low-cost producer of LNG to be supplied from resource rich North American natural gas basins.
Shell’s commitment, together with an SPA previously executed by Venture Global Calcasieu Pass with Edison S.p.A., brings the facility’s total committed capacity under binding, twenty-year FOB contracts to 3 MMtpy.
Mike Sabel and Bob Pender, co-CEOs of Venture Global LNG, jointly announced that “Shell’s additional purchase is a huge milestone, we believe a breakout event, and a significant validation of our best in class approach on our path to commencement of construction later this year. We are delighted that we continue to execute and achieve our development targets as we implement our strategy, alongside world-class partners, to become one of the lowest cost producers of LNG to the world’s most important energy customers.”
Venture Global LNG is developing both the 10 MMtpy Venture Global Calcasieu Pass facility on an approximately 1,000-acre site located at the intersection of the Calcasieu Ship Channel and the Gulf of Mexico and the 20 MMtpy Venture Global Plaquemines LNG facility in Plaquemines Parish, Louisiana on an approximately 630-acre site on the Mississippi River, approximately 30 miles south of New Orleans, Louisiana.
In the business of hydrocarbon production, accurate accounting of produced fluids and gases is critical from a process control, management and fiscal perspective.
The US East Coast will send out its first LNG exports in early 2018 as Dominion Energy’s Cove Point LNG export facility in Lusby, Maryland becomes operational.
The New LNG Imperative
The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.
November 29, 2017 10am CST
View on Demand