ExxonMobil to Buy 2 Million MT/Year of LNG from Venture Global Projects in US
05.15.2022 - NEWS

May 15, 2022 [S&P Global] – ExxonMobil has agreed to long-term deals to buy 2 million mt/year of LNG from Venture Global LNG liquefaction projects in the US, the companies said May 10.

 

Amid high spot prices in end-user markets that remain twice what they were a year ago, there has been a flurry of commercial activity during the first several months of 2022 tied to current and proposed US LNG export terminals, which offer long-term contracts with fixed fees and destination flexibility.

In addition to Venture Global, Cheniere Energy, Energy Transfer and NextDecade have been among the US operators and developers that have announced new offtake deals since the beginning of the year. With Europe seeking to wean itself off Russian gas amid Russia’s war in Ukraine, many US liquefaction projects that appeared stalled commercially just a year ago are now viable.

Venture Global began producing LNG at its 10 million mt/year Calcasieu Pass terminal in southwest Louisiana in January and shipped its first cargo March 1. It also has proposed three additional LNG terminals in Louisiana: Plaquemines LNG, with a capacity of up to 20 million mt/year, the up to 24 million mt/year Delta LNG project, and the up to 28 million mt/year CP2 facility.

Under the latest sales and purchase agreements, an ExxonMobil affiliate will buy 1 million mt/year of LNG from Plaquemines LNG and 1 million mt/year from CP2, the companies said in a statement. In an email, a Venture Global spokesperson said the deals will last 20 years. Pricing terms were not disclosed.

A major producer, distributor and trader of natural gas globally, ExxonMobil, with partner Qatar Petroleum, is currently building the Golden Pass LNG export facility in Texas. That project is expected to begin operations in 2024. The deals with Venture Global will help ExxonMobil diversify its supply portfolio as it works to support increasing global demand for the super-chilled power plant and home heating fuel.

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