Venture Global LNG expands partnership with Shell

US gas exporter Venture Global LNG has announced a 20-year agreement with Shell to supply 2 million tonnes per annum (MTPA) of LNG from Venture Global’s Plaquemines LNG export facility.
This new deal builds on Shell’s existing contract for 2 MTPA from the Calcasieu Pass LNG export terminal, bringing Shell’s total long-term offtake from Venture Global’s facilities to 4 MTPA, Venture Global said in a statement.

“Venture Global is honored that Shell, our first foundational customer at Calcasieu Pass, has chosen to expand its existing cooperation with our company with a second partnership at Plaquemines,” said Venture Global CEO Mike Sabel.

“Venture Global is committed to bringing low-cost US LNG online quickly, helping to keep the global market well supplied, while meeting our customers’ growing energy and climate goals. We look forward to working with Shell for many years to bring low-cost, clean American LNG to the markets that need it most,” he said.

Plaquemines, which has not yet been formally approved, would produce up to 20 MTPA of LNG beginning 2024, the company said. Global LNG demand is expected to nearly double by 2040, and the deal will secure additional volumes for Shell’s leading and diverse global LNG portfolio, it said.

Several EU governments, including Germany, have decided to fast-track works on two regasification terminals as they embrace US LNG imports in a bid to reduce dependence on Russian pipeline gas.
Chancellor Olaf Scholz said last week that the terminals in Germany would be in Brunsbüttel and Wilhelmshaven – for the latter Uniper was asked to revive plans, shelved in 2020. In addition, Hanseatic Energy Hub will seek planning permission for the Stade LNG project.