Venture Global lands 20-year LNG agreement
By Jack Burke09 May 2023
JERA will use fuel for energy production in Japan
Venture Global LNG and Japan’s JERA Co. have entered into a 20-year agreement for the sale of 1 million tonnes per annum (MTPA) of liquefied natural gas (LNG) from CP2 LNG.
CP2 LNG is Venture Global’s third project and is expected to commence construction later this year. The CP2 LNG terminal will be located on an approximately 546-acre site in Cameron Parish, Louisiana. The CP Express pipeline will originate in Jasper County, Texas and feed natural gas to the proposed LNG facility in Cameron Parish, Louisiana.
To date, the company has announced SPAs for over a third of the 20MTPA nameplate facility with active discussions ongoing for the remainder of its capacity. This deal follows JERA Global Markets’ purchase of the inaugural commissioning cargo of LNG exported from Venture Global’s first project, Calcasieu Pass.
“Venture Global is thrilled to be expanding our partnership with JERA, one of the world’s premiere energy providers and largest buyers of LNG,” said Mike Sabel, CEO of Venture Global LNG. “Japan has taken a pragmatic approach to ensuring its energy security while advancing environmental progress. We are honored to supply our growing customer base in Japan with a clean and reliable source of lower carbon energy and look forward to supporting JERA in its efforts to bring LNG to the region for many years to come.”
JERA is the largest power generation company in Japan, producing one third of Japan’s electricity.
“LNG procurement competition has been intensifying and thus, stable procurement of LNG in a timely manner in line with the domestic electricity supply-demand situation is needed to secure a stable supply of energy in Japan. This is a destination free FOB contract, which enables JERA to secure LNG in a high flexible manner and is expected to help with our capability to respond to volatility in the domestic electricity supply and demand.” said Sunao Nakamura, Senior Managing Executive Officer, Optimization of JERA.
Venture Global is a provider of U.S. LNG sourced from North American natural gas basins. Venture Global’s first facility, Calcasieu Pass, commenced producing first LNG in January 2022. The company is also constructing or developing an additional 60 MTPA of production capacity in Louisiana to provide clean, affordable energy to the world. The company is developing Carbon Capture and Sequestration (CCS) projects at each of its LNG facilities.