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GLNG COMMENTARY GLNG
Offtake agreements
Meanwhile, both Cheniere and Venture Global long-term demand for affordable, reliable and
are benefiting from new offtake deals, including ever cleaner energy.”
those they signed with Chevron this week. This strategy is also behind Chevron’s offtake
In Cheniere’s case, the company agreed to agreements with Venture Global. Similarly,
supply Chevron 2mn tpy in total – 1mn tpy the deals cover a combined 2mn tpy of LNG,
from Sabine Pass LNG from 2026 until 2042 with 1mn tpy set to come from the under-con-
and a further 1mn tpy for a 15-year period from struction Plaquemines LNG facility, and 1mn
2027, contingent on a further expansion at Cor- tpy from CP2 LNG, for which Venture Global
pus Christi beyond the Stage 3 project. This is the started striking offtake agreements earlier this
first SPA signed by Cheniere linked to additional year. Those deals have a duration of 20 years.
capacity beyond Stage 3. Venture Global’s SPAs with EnBW also entail
“These long-term SPAs underscore the volumes from both Plaquemines and CP2 total-
growing demand for reliable, cleaner burning ling 1.5mn tpy, or 750,000 tpy from each facility,
LNG supply beyond 2040 and further support over a 20-year period.
investment in additional LNG capacity beyond While EnBW is Venture Global’s first German
our Corpus Christi Stage III project,” stated customer, the US company is already well-estab-
Cheniere’s executive vice president and chief lished as a seller of LNG to European players, and
commercial officer, Anatol Feygin. “We look has existing agreements with PGNiG, BP, Shell,
forward to leveraging our market-leading LNG Repsol, Edison and GALP.
platform to explore opportunities to collaborate The deal comes as gas buyers in Germany
with Chevron on lower-carbon initiatives in the and elsewhere in Europe scramble to secure new
future,” he added. sources of supply to help them replace Russian
“Our strategy is to deliver lower-carbon gas. Negotiating offtake agreements takes time,
energy to a growing world,” said Chevron’s vice but, given that Germany revived several stalled
president of midstream, Colin Parfitt. “Our LNG import projects after the war in Ukraine
agreements with Cheniere allow us to har- started, more offtake deals with German – and
ness growing US natural gas production and other European – companies can be expected to
Gulf Coast LNG export capacity to help meet follow.
Week 25 24•June•2022 www. NEWSBASE .com P7
