Venture Global LNG and Excelerate Energy Inc. signed a 20-year LNG sales and purchase agreement (SPA) from the Arlington, Virginia-based company’s liquefaction facility being built in Plaquemines Parish, Louisiana.
Under the terms of the deal, Excelerate will acquire 0.7 million tonnes per annum (mtpa) of LNG on a free on board (FOB) basis from the facility, Venture Global announced Feb. 28 in a press release.
The Louisiana export facility will tap U.S. natural gas production as it continues to provide the global market with low-carbon energy to support worldwide energy and environmental progress, according to Venture Global.
Venture Global Plaquemines LNG LLC is developing the Plaquemines LNG facility, located 20 miles south of New Orleans. The facility has been under full construction since August 2021 and when fully developed will have an export capacity of up to 20 mtpa, according to details on Venture Global’s website. The facility will consist of up to 36 0.626 mtpa liquefaction trains, configured in 18 blocks.
Initial operations are expected to commence in 2024, according to the Energy Information Administration.
Excelerate and Venture Global executives both view the deal as positive, according to the release.
Excelerate president and CEO Steven Kobos said it was “an important milestone” as The Woodlands, Texas-based company continues to execute on its growth strategy.
Venture Global CEO Mike Sabel said it was in-line with the broader energy sector’s transition from coal to cleaner fuels such as natural gas.
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