US-based companies Excelerate Energy and Venture Global LNG have formed a new strategic partnership by executing a 20-year LNG sale and purchase agreement (SPA).
The deal will see Excelerate purchase 0.7 million tonnes per annum (mtpa) of LNG on a free-on-board (FOB) basis from Venture Global’s Plaquemines LNG facility in Plaquemines Parish, Louisiana.
“We are proud to enter this new strategic partnership with Venture Global, which supports our efforts to enhance energy security and accelerate the energy transition by delivering natural gas to our customers worldwide” , said Steven Kobos , President and CEO of Excelerate.
“This agreement is an important milestone for Excelerate as we continue to execute our growth strategy. Building a diversified LNG supply portfolio with strong partners like Venture Global will allow us to offer more flexible and cost-effective products to existing and new customers in downstream markets.”
Mike Sabel , CEO of Venture Global, added: “Venture Global is thrilled to launch this new collaboration with Excelerate, a leader in the FSRU industry, as their inaugural long-term LNG supplier. Their foresight and transformational work to bring much-needed energy infrastructure to markets around the globe has enabled countries from Europe, the global south, and the developing world to fuel switch from coal to natural gas while lifting millions out of energy poverty. We look forward to many years ahead of working together as strategic partners to fuel these diverse markets worldwide.”
The agreement coincides with an important project milestone that Venture Global reached in the construction of the Plaquemines LNG facility.
This includes the raising of the roof of the first LNG storage tank at the export facility ahead of schedule and nine months after the project’s final investment decision (FDI) .
Just recently, the company also signed two 20-year LNG SPAs with China Gas Hongda Energy Trading, a wholly-owned subsidiary of China Gas Holdings, under which the latter will buy 1 mtpa of LNG on a FOB basis from Plaquemines LNG and another 1 million mtpa from the CP2 LNG export facility.
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