The U.K.’s Grain LNG and Venture Global executed a binding long-term terminal use agreement (TUA) enabling the regasification and sale of LNG from Venture Global's terminals in Louisiana, including the proposed CP2 LNG, subject to obtaining necessary federal permits, the companies said Feb. 5.

CP2 is under review by the Biden administration after a shift in climate policy regarding LNG export facilities, according to a January report by The New York Times.

Under the agreement, Venture Global will have the ability to access 3 million tonnes per annum (mtpa) of LNG storage and regasification capacity at the Isle of Grain LNG receiving terminal for 16 years beginning in 2029. The 3 mtpa is equivalent to up to 5% of average U.K. gas demand.

The agreement is the second to come from Grain LNG's competitive auction process launched in September 2023. The auction further secures the future of Europe's largest LNG import terminal into the mid-2040s.

Grain LNG, which is currently under expansion, will soon have enough regasification capacity to service approximately one-third of U.K.’s gas demand and serve as a gateway to the broader European region. 

Venture Global’s projects — Calcasieu Pass, Plaquemines LNG and CP2 LNG —will bolster the company’s status as a strategic supplier to Europe, the company said. Volumes “will be critical to the U.K. and Europe's efforts to replace LNG volumes from other suppliers,” according to the news release. To date, Venture Global has exported about 75% of its LNG cargos to Europe.