Two long-term supply deals struck this week by liquefied natural gas developer Venture Global LNG put its second Louisiana LNG facility on the verge of construction and financing approval, analysts said.
Supply deals—with Exxon Mobil and Malaysian state-oil firm Petronas—secured buyers for 80% of the plant's projected 20 million tonnes per annum (MTPA) capacity, a milestone that often triggers the major financial commitment known as FID.
"Eighty percent is a good number for Venture Global to authorize FID," said Ben Chu, head of trading analytics and proprietary data, natural gas at consultants Wood Mackenzie. The company took FID on its first plant at about the same share, he said.
A Venture Global LNG spokesperson declined to comment. In March, the company said the FID and project financing would come "soon."
The Petronas and Exxon Mobil contracts follow purchase agreements with China Petroleum & Chemical and New Fortress Energy for the plant.
Early work on the Plaquemines LNG plant, which is located about 20 miles (32 kilometers) south of New Orleans, began last year. Venture Global LNG targets first export of LNG from the site by the end of 2024, according to a federal filing.
Venture Global LNG plants are designed with modular liquefaction units prebuilt in factories and put together onsite to expedite construction.
It has proposed four LNG facilities in Louisiana.
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