Venture Global and Grain LNG pen long-term LNG deal
U.S. Venture Global LNG and UK National Grid Grain LNG have signed a binding long-term terminal use agreement (TUA), enabling the regasification and sale of LNG from all of Venture Global’s terminals in Louisiana, U.S., including CP2 LNG, subject to obtaining necessary federal permits.
Under the agreement, Venture Global will have the ability to access 3 million tons per annum (MTPA) of LNG storage and regasification capacity at the Isle of Grain LNG receiving terminal for 16 years beginning in 2029-equivalent of up to 5% of the average UK gas demand.
According to the National Grid, this is the second agreement from Grain LNG’s competitive auction process which was launched in September 2023.
Grain LNG, currently undergoing expansion, is expected to soon have enough regasification capacity to service approximately one-third of the UK’s gas demand, serving as a gateway to the UK energy market as well as the broader European region.
Katie Jackson, President of National Grid Ventures, said: “I’m delighted that we are today able to announce the second result from our September auction, commencing a long-term partnership with Venture Global. LNG imports play a critical role in making sure the whole of the UK has the gas it needs, when it needs it, providing a flexible and reliable supply of gas to heat peoples’ homes.”
“The UK has recently seen a significant rise in LNG imports as Europe has sought alternative energy sources. The addition of our first U.S. customer further diversifies our supplier base, underpins UK consumers’ energy security and guarantees the future of our world-class site out to 2045.”
As for Venture Global, the company noted that with volumes across its projects (Calcasieu Pass, Plaquemines LNG and CP2 LNG), this investment will bolster its status as a strategic supplier to Europe, adding that, to date, it has exported about 75% of its cargo to Europe.
Mike Sabel, CEO of Venture Global, commented: “Venture Global is thrilled to announce our first investment in LNG infrastructure outside of the United States, bolstering our ability to supply LNG from all our projects. The Grain LNG terminal is an important gateway to the broader European market, and we look forward to supplying the region through this new access point for years to come.”