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Today, Venture Global LNG announced the execution of a long-term Sales and Purchase Agreement (SPA) with JERA Co., Inc. for the sale of 1 million tonnes per annum (MTPA) of liquefied natural gas (LNG) from CP2 LNG for 20 years. CP2 LNG is Venture Global’s third project and is expected to commence construction later this year. To date, the company has announced SPAs for over a third of the 20MTPA nameplate facility with active discussions ongoing for the remainder of its capacity. This deal follows JERA Global Markets’ purchase of the inaugural commissioning cargo of LNG exported from Venture Global’s first project, Calcasieu Pass.
“Venture Global is thrilled to be expanding our partnership with JERA, one of the world’s premiere energy providers and largest buyers of LNG,” said Mike Sabel, CEO of Venture Global LNG.
“Japan has taken a pragmatic approach to ensuring its energy security while advancing environmental progress. We are honoured to supply our growing customer base in Japan with a clean and reliable source of lower carbon energy and look forward to supporting JERA in its efforts to bring LNG to the region for many years to come.”
Sunao Nakamura, senior managing executive officer, Optimization of JERA said, “LNG procurement competition has been intensifying and thus, stable procurement of LNG in a timely manner in line with the domestic electricity supply-demand situation is needed to secure a stable supply of energy in Japan. This is a destination free FOB contract, which enables JERA to secure LNG in a high flexible manner and is expected to help with our capability to respond to volatility in the domestic electricity supply and demand.”