trending Market Intelligence /marketintelligence/en/news-insights/trending/tnk3tu2iey9as-nb5v7geq2 content esgSubNav
In This List

Venture Global signs LNG contract with Repsol as deals for developer mount


Despite turmoil, project finance remains keen on offshore wind

Case Study

An Energy Company Assesses Datacenter Demand for Renewable Energy


Japan M&A By the Numbers: Q4 2023


See the Big Picture: Energy Transition in 2024

Venture Global signs LNG contract with Repsol as deals for developer mount

Venture Global LNG reached a long-term agreement to supply the Spanish energy company Repsol S.A. with liquefied natural gas from its proposed Calcasieu Pass LNG export terminal in Louisiana, adding to a series of deal announcements by the developer in recent months as it targets starting construction on the facility in early 2019.

Under the binding 20-year sales and purchase agreement, announced Sept. 7, Venture Global will supply 1 million tonnes per annum of LNG on a free-on-board basis from Calcasieu Pass once the export facility begins commercial service, which the developer expects to happen in 2022. The developer has yet to reach a final investment decision for the terminal.

"Our contract execution with Repsol, an industry leader across the LNG value chain, represents another significant milestone as we accelerate the development of our Calcasieu Pass project," Venture Global LNG's co-CEOs Mike Sabel and Bob Pender said in a statement. The developer's latest deal announcement comes at a time when some other second-wave developers have struggled to secure long-term contracts used to prove viability and win financial support for new projects.

The 10-mtpa capacity Calcasieu Pass facility that Venture Global is building on the Gulf of Mexico is one of two terminals the company is developing, both of which would use modular trains that cool natural gas to a liquid. The other is the 20-mtpa Plaquemines LNG facility on the Mississippi River.

On Aug. 16, Venture Global announced it has raised $160 million of additional funding from large institutional investors. This brought the company's total capital for LNG project development to $630 million as it moved closer to starting construction on the estimated $4.5 billion Calcasieu Pass project. Calcasieu Pass received a positive draft environmental impact statement from the Federal Energy Regulatory Commission in June and awaits authorization.

The Calcasieu Pass project would consist of nine blocks, each containing two 0.56-mtpa liquefaction trains.

The estimated $8.5 billion Plaquemines project was one of 12 LNG projects to get new and updated environmental schedules from FERC on Aug. 31. The new schedules were part of the federal regulator's effort to speed up reviews of applications to build export terminals. FERC set a self-imposed deadline of May 3, 2019, to notify the public of a final environmental impact statement for the Plaquemines project, which would be a major step toward final authorization from the commission.

In May, Venture Global signed a 20-year sales and purchase agreement with BP PLC for 2 mtpa of LNG from Calcasieu Pass, which had brought total long-term commitments to about 6 mtpa of LNG from the facility.

In June, the export developer signed an agreement with Polish Oil and Gas Co. for 2 mtpa of LNG tied to both the Calcasieu Pass and Plaquemines export terminals. Other off-take partners touted by Venture Global include Royal Dutch Shell PLC, Italy's Edison S.p.A. and Portugal's Galp Energia SGPS S.A.

"We are delighted that Repsol, supporting the innovative, low-cost approach Venture Global is deploying at both Calcasieu Pass LNG and Plaquemines LNG, will be joining our existing, high quality partners," Sabel and Pender said.