Italy’s oil and gas giant Eni has executed a liquefied natural gas (LNG) sales and purchase agreement (SPA) with U.S. energy player Venture Global.
Under the deal, Eni will purchase 2 million tonnes per annum (mtpa) of LNG for 20 years from CP2 LNG Phase 1, which is Venture Global’s third LNG project. The offtake is slated to start by the end of the decade.
While nearly 40 cargoes of U.S. LNG from Calcasieu Pass and Plaquemines LNG facilities have been delivered to Italy, this deal marks Eni’s first-ever long-term agreement with a U.S. LNG producer.
According to the Italian major, it represents a significant milestone in its strategy to expand and diversify its global LNG footprint. Part of these volumes will contribute to the diversification of Europe’s gas supplies.
“We are honored that Eni, a leading innovator and global gas player, has chosen Venture Global as their first American LNG supplier. Italy is an important ally and trading partner to the United States, and we are grateful for the trust of Eni as our newest customer,” said Mike Sabel , Venture Global’s CEO.
In combination with 20-year deals with Malaysia’s Petronas and Germany’s SEFE , this brings the total amount of LNG contracted from CP2 LNG Phase 1 to 13.5 mtpa and the total contracted capacity for all of Venture Global’s projects to 43.5 mtpa.
The facility, which Eni says will have a peak production capacity of 28 mtpa, is currently under development in Cameron Parish, Louisiana, United States. The U.S. player is targeting its first LNG exports from CP2 in Q3 2027.
Worley, which is in charge of the engineering, procurement, and construction (EPC) planning services for the project, recently said the start of work at the facility was edging closer .
As for Eni, a gas discovery was recently made in an offshore block situated in Angola’s Lower Congo Basin operated by its joint venture with BP, Azule Energy.