U.S. liquefied natural gas (LNG) exporter Venture Global Inc announced on Thursday that Petronas has agreed to buy 1 million metric tons of LNG from its CP2 project, its first new CP2 customer in two years.
A mere startup three years ago, Venture Global has quickly moved to become the U.S.’ second largest LNG producer and has played a key role in keeping the country the world’s top LNG exporter.
The Petronas deal will run for 20 years and, according to one person with knowledge of the matter, the supply would come from phase 1 of the project.
If constructed the CP2 plant in Louisiana will be the second largest LNG plant in the U.S. with a combined capacity of 28 MTPA and could make Venture Global the country’s largest LNG producer. The project is expected to be constructed in two phases, with phase 1 being 15 MTPA.
The company has yet to make a financial decision to construct the project but has promised a decision in the second half of 2025.
The Petronas deal is the first announcement of a new buyer since 2023, when the company was involved in a public spat with some of the world’s largest energy companies including BP Plc, Shell, Repsol, Orlen and Edison over its failure to provide them with their cargoes on time from its first plant, Calcasieu Pass.
Venture Global earlier this year moved to commercial operations at Calcasieu Pass and has been selling its cargoes to its long term customers.
Venture Global recently announced that New Fortress Energy had decided to increase its purchase of LNG from CP2 to 1.5 MTPA from an original 1 MTPA.
(Reporting by Curtis Williams)