Venture Global LNG Inc. has announced that its subsidiary, Venture Global Calcasieu Pass LLC, has entered a sales and purchase agreement (SPA) with Shell NA LNG LLC. Under the agreement, Shell has agreed to purchase 1 million tpy of LNG over a 20-year period from Venture Global Calcasieu Pass’ facility, which is being developed in Cameron Parish, Louisiana, US. The agreement will take effect once the facility begins commercial operations, and will see shell purchase the LNG on a free on board basis (FOB) for a purchase price that will be indexed to monthly Henry Hub prices, as well a facility fee indexed to inflation.
The Co-CEOs of Venture Global LNG, Mike Sabel and Bob Pender, said: “Venture Global LNG considers the Shell 20-year SPA to be an important milestone for the company. We are delighted that we continue to achieve our promised milestones as we implement our strategy to become the lowest cost producer of LNG in the world.”
Venture Global LNG is developing two facilities. The first is the 10 million tpy Venture Global Calcasieu Pass facility, which is located on a 1000 acre (approximately) site at the intersection between the Gulf of Mexico and Calcasieu Ship Channel. The second is the 20 million tpy Venture Global Plaquemines LNG facility, which is located on a 630 acre site in Plaquemines Parish at river mile marker 55 on the Mississippi River.
Edited from press release by David Rowlands
Read the article online at: https://www.lngindustry.com/liquefaction/08022016/venture-global-enters-lng-spa-with-shell-1972/
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