A long-term liquefied natural gas supply agreement was inked by US LNG exporter Venture Global LNG and Japan’s Inpex, as reported by LNG Prime.
Stable supply of energy
According to a statement from Inpex, the agreement calls for the company’s subsidiary Inpex Energy Trading Singapore to purchase one million tonnes of LNG annually on a FOB basis from Venture Global’s CP2 LNG over the course of 20 years.
“This agreement will enable the Inpex Group to procure LNG from the United States – one of the world’s leading LNG exporters – on a long-term basis, expand its LNG supply capacity and diversify its supply sources to further contribute to the stable supply of energy worldwide,” Inpex said.
The owner of the Australian Ichthys LNG export facility said Venture Global will deliver the volumes to its Naoetsu LNG import terminal as well as to other clients’ terminals in Japan and other nations.
Inpex is working to develop its midstream and downstream businesses while also growing its LNG trading business.
The business added that in order to support this ambition, it will raise the amount of LNG handled by about 3 mtpa with the goal of handling around 10 mtpa by 2030 by combining its equity volume from present projects.
CP2 LNG construction to start next year
While Venture Global made a final investment decision on the Plaquemines LNG export plant earlier this year, the business is already exporting LNG from its Calcasieu Pass plant in Louisiana.
Venture Global said in December 2021 that it will invest over $10 billion in CP2 LNG, which would be built close to its Calcasieu Pass liquefaction facility in Louisiana.
With New Fortress Energy, ExxonMobil, EnBW, and Chevron following suit, the company agreed to supply the project.
With a nameplate liquefaction capacity of 20 mtpa and a peak capacity of roughly 24 mtpa, CP2 LNG has a terminal.
The facility would include four 200,000-cbm full containment LNG storage tanks in addition to 18 liquefaction blocks with nameplate capacities of approximately 1.1 mtpa each.
Subject to receiving governmental clearances, Venture Global anticipates starting construction on its third project in 2023 and shipping the first LNG supplies in 2026.
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Source: LNG Prime