Venture Global LNG has agreed to deliver two million tonnes per annum (MTPA) to BP from the Venture Global Calcasieu Pass LNG export facility, which is being developed with an investment of $4.5bn in the US state of Louisiana.

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Image: BP's world headquarters in St. James's, City of Westminster, London. Photo: courtesy of WhisperToMe/Wikipedia.org.

In this regard, the company’s subsidiary Venture Global Calcasieu Pass has signed a 20-year Sales and Purchase Agreement (SPA) with BP for the supply of one fifth of the LNG export facility’s capacity.

As per the terms of the agreement, BP will buy liquefied natural gas (LNG) on a free on board basis (FOB) for a 20-year term which will begin from the start of the commercial operation date new LNG export facility.

Located at the intersection of the Calcasieu Ship Channel and the Gulf of Mexico in the Cameron Parish, the Venture Global Calcasieu Pass LNG export facility is slated to be commissioned in 2022.

Venture Global LNG co-CEOs Mike Sabel and Bob Pender said: “We are delighted that BP, one of the world’s leading international oil and gas companies, has committed to purchase 2 MTPA from our Calcasieu Pass LNG export facility, bringing our total contracted quantity under binding 20-year SPAs to 6 MTPA.”

Earlier this month, Venture Global Calcasieu Pass signed a 20-year SPA with Portuguese energy company Galp to supply one million MTPA from the Venture Global Calcasieu Pass LNG export facility.

In March, Shell increased its SPA to purchase a total of two million MTPA from the LNG export facility. Prior to that, in last September, EDF-owned Italian energy company Edison agreed to buy one million MTPA from Venture Global Calcasieu Pass.

Venture Global LNG is currently finalizing arrangements for Calcasieu Pass and moving towards the financing stage of the project. Simultaneously, the company has started to execute binding commitments for the $8.5bn Plaquemines LNG export terminal, which is also being built in Louisiana.

The Plaquemines LNG terminal, which is located on the west bank of the Mississippi River, will have an export capacity of 20 MTPA.