NFE announces LNG sale and purchase agreements with Venture Global LNG
March 16, 2022
In the news
NEW YORK--(BUSINESS WIRE)--New Fortress Energy Inc. (NASDAQ: NFE) (together with its affiliates, “NFE”) announced today the execution of two 20-year Sale and Purchase Agreements (SPA) with Venture Global LNG (“Venture Global”). Under the deals, Venture Global will supply 2 million tonnes per annum (MTPA) of LNG on a free on board (FOB) basis from its LNG facilities in Louisiana.
Under the first agreement, NFE will purchase 1 MTPA of LNG from Venture Global’s Plaquemines LNG export facility in Plaquemines Parish, Louisiana for a term of 20 years.
“We are pleased to partner with Venture Global as we advance our mission of providing customers around the world with access to low-carbon natural gas and affordable electricity,” said Wes Edens, Chairman and CEO of NFE. “These volumes support our plan to expand and diversify our stable natural gas supply portfolio to meet the growing needs of our customers in a structurally short global natural gas market.”
In addition to 1 MTPA from Plaquemines LNG, NFE agreed to purchase an additional 1 MTPA of LNG from Venture Global’s CP2 LNG facility, located in Cameron Parish, Louisiana, adjacent to Venture Global’s existing Calcasieu Pass LNG facility. In December 2021, Venture Global filed a formal application requesting authorization from the Federal Energy Regulatory Commission (FERC) to site, construct, and operate the 20 MTPA nameplate capacity CP2 LNG facility.
“Venture Global is proud to enter into a long-term LNG partnership with New Fortress Energy. Our companies share a commitment to keeping energy markets well supplied while also advancing clean energy goals, through the export of low-cost US LNG to emerging economies,” said Mike Sabel, Chief Executive Officer of Venture Global LNG. “The CP2 LNG facility, adjacent to Calcasieu Pass, will build on our vision of making Louisiana an international hub for innovation to enhance global energy security.”
The effectiveness of each agreement is subject to customary terms and conditions.
About New Fortress Energy Inc.
New Fortress Energy Inc. (NASDAQ: NFE) is a global energy infrastructure company founded to help accelerate the world’s transition to clean energy. The company funds, builds and operates natural gas infrastructure and logistics to rapidly deliver fully integrated, turnkey energy solutions that enable economic growth, enhance environmental stewardship and transform local industries and communities.
About Venture Global LNG
Venture Global is a long-term, low-cost provider of U.S. LNG sourced from resource rich North American natural gas basins. Venture Global’s first facility, Calcasieu Pass, commenced producing LNG in January 2022. The company is also constructing or developing an additional 60 MTPA of production capacity in Louisiana to provide clean, affordable energy to the world. The company is developing Carbon Capture and Sequestration (CCS) projects at each of its LNG facilities.