U.S. LNG company Venture Global LNG has agreed to buy natural gas for its Plaquemines LNG export plant in Louisiana, expected to start up in 2024, from a unit of U.S. energy company NextEra Energy Inc .
Venture Global said it filed the gas supply agreement with the U.S. Department of Energy on March 22. The company, however, did not provide details of that agreement.
The deal with NextEra followed an earlier gas supply agreement with a unit of Spanish energy company Repsol SA.
Venture Global started early site work on Plaquemines, which is located about 20 miles (32 km) south of New Orleans, in 2021.
The company has said construction firm Zachry Group will work with engineering firm KBR Inc. to build the first phase at Plaquemines.
The venture, called KZJV, will install modular liquefaction trains at Plaquemines that are similar to systems at Venture Global's Calcasieu Pass export plant in Louisiana.
Plaquemines would produce up to 20 million tonnes per annum (mtpa) of LNG or 2.6 Bcf/d of natural gas. Analysts have said that the plant would cost about $8.9 billion and could start producing first LNG in 2024.
In total, Venture Global has about 70 mtpa of LNG export capacity in operation, construction or development in Louisiana, including the 10-mtpa Calcasieu Pass (operation and construction), 20-mtpa Plaquemines (construction), 20-mtpa Delta (development) and 20-mtpa CP2 (development).
Venture Global has entered long-term agreements to sell LNG to units of several companies around the world, including China National Offshore Oil Corp (CNOOC), China Petroleum and Chemical Corp (Sinopec), Shell Plc, BP Plc, Edison SpA, Galp Energia SGPS SA and Polish Oil and Gas Co (PGNiG).
Recommended Reading
US Gulf Coast Heavy Crude Oil Prices Firm as Supplies Tighten
2024-04-10 - Pushing up heavy crude prices are falling oil exports from Mexico, the potential for resumption of sanctions on Venezuelan crude, the imminent startup of a Canadian pipeline and continued output cuts by OPEC+.
Texas LNG Export Terminal Completes Required Permitting for FID
2024-01-26 - Glenfarne expects the Texas LNG project’s commercialization to be completed in the first half of 2024.
Freeport LNG Says Trains 1, 2 at Texas Facility May Shut Until May
2024-03-20 - Freeport LNG on March 20 said its Train 2 liquefaction unit at the Texas plant has been shut down, while Train 1 will be taken down imminently as it expects inspections and any subsequent repairs at both the units to be completed by May.
FERC Approves Extension of Tellurian LNG Project
2024-02-19 - Completion deadline of Tellurian’s Driftwood project was moved to 2029 and phase 1 could come online in 2027.
Dispatch from the LNG Front: Development Not ‘Paused’ so much as Slowed
2024-04-04 - Analysts: Low prices may stall upcoming gas gathering projects that are needed for an expected boom.