EDF will buy LNG from Venture Global on a free-onboard basis (FOB) for a period of 20 years commencing from the commercial operation date of the Plaquemines facility
The Plaquemines LNG project is a 20Mtpa LNG export facility. (Credit: Freeimages/Carlo San)
Venture Global Plaquemines LNG, a subsidiary of US-based liquefied natural gas (LNG) provider Venture Global LNG, has signed a 20-year agreement with French utility Électricité de France (EDF) to supply one million tonnes per annum (Mtpa) of LNG from its Plaquemines facility in Louisiana.
Under the agreement, EDF will buy LNG from Venture Global on a free-onboard basis (FOB) for a period of 20 years commencing from the commercial operation date of the Plaquemines LNG facility.
Earlier, Plaquemines had sold 2.5Mtpa of LNG under a 20-year agreement to Polish oil and gas firm PGNiG.
Venture Global Plaquemines project secured DOE authorisation for LNG exports in October 2019
Last October, Venture Global secured authorisation from the US Department of Energy (DOE) to export domestically produced LNG from its Plaquemines LNG facility in Louisiana.
To be built on the Mississippi River in Plaquemines Parish, the project is 32km from the Port of New Orleans.
The DOE had stated that the clearance will enable the facility to export up to 3.4 billion cubic feet per day (Bcf/d) of natural gas as LNG from the proposed Plaquemines project.
The Plaquemines LNG project is a 20Mtpa LNG export facility to be developed in two phases with an investment of $8.5bn.
It will include a total of 18 liquefaction blocks and six pretreatment facilities, with each phase comprising nine liquefaction blocks and three pretreatment facilities.
According to Venture Global, the Plaquemines facility utilizes an identical configuration to the Calcasieu Pass LNG project in Cameron Parish, Louisiana.
The 10Mtpa Calcasieu Pass facility is under construction at the intersection of the Calcasieu Ship Channel and the Gulf of Mexico.