Chevron buys LNG from Venture Global’s Plaquemines and CP2 facilities
U.S. energy major Chevron will purchase two million tonnes per annum (mtpa) of LNG for 20 years from compatriot LNG export project developer Venture Global.
On 22 June, Venture Global announced the execution of two long-term sales and purchase agreements (SPAs) for the purchase of two mtpa of LNG for 20 years.
Under the SPAs, Chevron U.S.A. will buy one mtpa from the Plaquemines LNG facility and one mtpa from CP2 LNG.
Plaquemines LNG has been under full construction since August 2021. The export project is on the Mississippi River, south of New Orleans. It is based on mid-scale liquefaction technology. It will consist of two electrically-driven trains in each block, with nine blocks for the entire facility.
On the other hand, the construction of CP2 LNG is to start in 2023. To remind, Venture Global revealed at the end of 2021 that CP2 LNG will take place in Cameron Parish, adjacent to Calcasieu Pass.
Venture Global CEO Mike Sabel said: “As we prepare to roll out trains number 55 through 90 at CP2, we are honored that this competitive advantage has been recognized by Chevron.”
“Our agreements with Venture Global allow Chevron to deliver affordable, reliable, and ever cleaner energy to meet long-term demand,” said Colin Parfitt, Chevron vice president, Midstream. “This is part of Chevron’s strategy to connect and strengthen relationships across the natural gas value chain; from natural gas production and lower carbon initiatives, to transportation, marketing and delivery to the customers who need it most.”
Venture Global’s first facility, Calcasieu Pass, started producing LNG in January 2022. The company is also constructing or developing an additional 60 mtpa of production capacity in Louisiana to provide clean, affordable energy. It is developing carbon capture and sequestration (CCS) projects at each of its LNG facilities.