TotalEnergies, Vitol Secure LNG from Venture Global

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Venture Global signed offtake agreements for 2.55 MTPA of LNG drawn from a U.S. portfolio that's set for expansion by next year.

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A Statement of Trust, Venture Global Says

TotalEnergies and global commodity trader Vitol signed up to secure volumes of liquefied natural gas (LNG) from the portfolio of Venture Global, the producer said Tuesday. According to Industrial Info Resources data, there are 18 active capital Venture Global projects with a total investment value of $88.67 billion.

Industrial Info Resources reported in NATGAS Today that regular maintenance continues to curb levels of feed gas supporting LNG exports. The Calcasieu Pass and Plaquemines terminals in Louisiana, both operated by Venture Global, experienced small feed gas declines this week.

Venture Global, however, remains one of the largest LNG companies in the world by volume. On Tuesday, the company said it signed a five-year agreement with TotalEnergies to deliver 0.85 million tons per annum (MTPA) of LNG sourced from Venture Global's existing portfolio.

A separate deal with Vitol expands its five-year offtake agreement brokered in March from 1.5 MTPA to 1.7 MTPA.

"These agreements reflect the continued confidence and trust in our ability to deliver reliable, low-cost U.S. LNG to global markets quickly and at scale as demand for energy security continues to grow," said Mike Sabel, the chief executive officer of Venture Global.

Financial terms were not disclosed. Sabel added that Venture Global clients have a variety of short-, medium- and long-term supply options.

Venture Global has a deep bench. It boasts more than 100 MTPA of capacity in production, under construction or in development.

U.S. LNG to Reach New Heights

Domestic LNG producers are performing well against a backdrop of higher commodity prices triggered by conflict in the Middle East. QatarEnergy, one of the largest LNG producers in the world, may be facing five-years' worth of issues because of damage incurred during a drone strike.

By the Numbers

• 59% increase in Venture Global revenue
• 2027 could bring new volumes from the company

On Monday, Venture Global rival Cheniere Energy raised its financial guidance because of higher market margins and an expected increase in LNG production. The company said it is on pace to surpass 5,000 cargoes of LNG and 10 billion cubic feet in natural gas processing capacity by the end of the year. Net revenue of $5.8 billion over the three-month period ending March 31 marked an 8% increase over year-ago levels.

Venture Global, for its part, said the 130 cargos laden with its LNG during the first quarter marked a 111% increase over the same period last year and established a new quarterly record for the company.

Like Cheniere, Venture Global is primed for expansion. It expects to see the first commercial operations from the second phase of its Plaquemines project by the middle of next year. Plaquemines is already the second-largest LNG terminal by volume, behind Chenier's Sabine Pass facility in Louisiana with an estimated 3.8 billion cubic feet per day (Bcf/d) in processing capacity.

Construction, meanwhile, is under way for the second phase of the Calcasieu Pass terminal, with first LNG expected by the second half of 2027.

"We have raised the roofs on two of the four LNG storage tanks, the perimeter wall protecting the facility is watertight, and 12 of the 36 LNG liquefaction trains are on their foundations," the company said. The facility currently can process 1.76 Bcf/d.

Venture Global generated $4.6 billion in revenue over the three-month period ending March 31, a 59% increase from the same period last year. Net income of $488 million was a 23% increase from year-ago levels.

Key Takeaways

• Offtake agreements are a statement of confidence, Venture Global says.
• The company plans to expand its LNG facilities by next year

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).