Venture Global inks equipment supply deal with Baker Hughes to boost its LNG production
To support its long-term expansion plan to increase production from 70 million tons per annum (mtpa) to more than 100 mtpa of nameplate LNG export capacity, U.S. Venture Global has executed an expanded master equipment supply agreement with compatriot Baker Hughes.
The agreement includes the delivery of additional liquefaction train systems and power island systems for Venture Global’s future LNG export projects.
Mike Sabel, CEO of Venture Global, stated: “Venture Global is thrilled to announce our long-term plan to expand LNG production both in and outside of Louisiana, building on the momentum of our first three projects – Calcasieu Pass, Plaquemines LNG and CP2 LNG. Now more than ever we are committed to our mission of delivering low-cost LNG at a larger scale to support the world’s growing demand for energy security, prosperity and environmental progress.”
Lorenzo Simonelli, Chairman and CEO of Baker Hughes, commented: “Natural gas will continue to play a critical role as a bridging and destination fuel for the energy transition. Building on our positive track record for the Calcasieu Pass and Plaquemines LNG projects, we look forward to providing VG with our proven technology solutions.”
According to Venture Global, cargoes originating from its Calcasieu Pass project have been delivered to 24 countries and accounted for approximately 10% of the LNG exported from the U.S. to Europe in 2022 and 2023.
As per the 20 mtpa Plaquemines LNG facility, the company has taken final investment decision (FID) on both phases and the first LNG is expected to be produced in 2024. Venture Global said that by early September, Plaquemines LNG will have received the first four liquefaction train modules (blocks 1 and 2) and the roof will be raised on its third LNG storage tank.
The company also informed that it expects to commence construction of its CP2 LNG facility later this year following receipt of FERC authorization. To date, 9.25 mtpa of CP2 LNG’s 20 mtpa nameplate capacity has been sold under 20-year sales and purchase agreements.
Baker Hughes, as a strategic LNG equipment supplier to Venture Global, provided LNG technology solutions to the Calcasieu Pass LNG facilities and is expected to provide the same to the currently under-construction Plaquemines LNG facility.