Venture Global and Grain LNG Ink 16-Year Deal for LNG Supply to UK
(P&GJ) — Grain LNG and Venture Global have announced the execution of a binding long-term terminal use agreement enabling the regasification and sale of LNG from all of Venture Global’s terminals in Louisiana, including CP2 LNG, subject to obtaining necessary federal permits.
Under the agreement, Venture Global will have the ability to access 3 million tonnes per annum (3MTPA) of LNG storage and regasification capacity at the Isle of Grain LNG receiving terminal for sixteen years beginning in 2029-equivalent of up to 5% of average U.K. gas demand.
This is the second agreement from Grain LNG’s competitive auction process which was launched in September 2023. The successful outcome of the auction further secures the future of Europe’s largest LNG import terminal into the mid-2040s.
Currently undergoing a significant expansion, Grain LNG will soon have enough regasification capacity to service approximately one third of the UK’s gas demand, serving as a gateway to the UK energy market as well as the broader European region. The UK has recently seen a significant rise in LNG imports as Europe has diversified its LNG sources.
With volumes across its projects – Calcasieu Pass, Plaquemines LNG and CP2 LNG – this investment will bolster Venture Global’s status as a strategic supplier to Europe. This flexibility and access to Venture Global’s volumes will be critical to the UK and Europe’s efforts to replace LNG volumes from other suppliers. To date, Venture Global has exported about 75% of its cargoes to Europe.
“Venture Global is thrilled to announce our first investment in LNG infrastructure outside of the United States, bolstering our ability to supply LNG from all our projects,” Mike Sabel, CEO of Venture Global, said. “The Grain LNG terminal is an important gateway to the broader European market, and we look forward to supplying the region through this new access point for years to come.”
Related News
Related News
- Keystone Oil Pipeline Resumes Operations After Temporary Shutdown
- Freeport LNG Plant Runs Near Zero Consumption for Fifth Day
- Biden Administration Buys Oil for Emergency Reserve Above Target Price
- Mexico Seizes Air Liquide's Hydrogen Plant at Pemex Refinery
- Enbridge to Invest $500 Million in Pipeline Assets, Including Expansion of 850-Mile Gray Oak Pipeline
Comments