Venture Global Expects to be Germany's Top LNG Supplier

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--U.S. liquefied natural gas (LNG) developer Venture Global (Arlington, Virginia) said it expects to be the biggest foreign supplier of products to the German market.

Venture Global on Wednesday said it signed a 20-year agreement with German company Security Energy for Europe (SEFE) GmbH, a subsidiary of SEFE Energy, to secure three-quarters of a million metric tons of LNG from the second phase of the Calcasieu Pass terminal in Louisiana.

The initial Calcasieu Pass terminal had been operating in the commissioning phase over the last three years until mid-April. Venture Global said commercial operations started several years after it made its final investment decision, "despite substantial impacts including two hurricanes, the COVID-19 pandemic, and major unforeseen manufacturing issues."

The sales agreement from the second phase of the Calcasieu Pass terminal brings the total commitment from SEFE to around 3 million tonnes per year. With that, Venture Global said it expects to become the largest LNG supplier to the German market, already delivering nearly 80 cargoes from the existing facility at Calcasieu Pass and its recently-launched Plaquemines plant in Louisiana to date.

"Venture Global is thrilled to expand our strategic partnership with Germany and SEFE and play a leading role in ensuring security of energy supply and affordability for not only Germany but the rest of the European gas market," Mike Sabel, Venture Global's chief executive officer, said in a statement.

Construction began in 2023 at a 1,150-acre site adjacent to the existing terminal in Cameron Parish. Venture Global expects the second phase of Calcasieu Pass will have a nameplate capacity of at least 2.65 billion cubic feet per day (Bcf/d).

IIR Energy on Wednesday reported the facility was operating at around 97% of its peak capacity.

First LNG is expected from the second phase of Calcasieu Pass (CP2) by 2027. Combined with Plaquemines, Venture Global said it expects to eventually become the U.S. leader in total deliveries.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can click here for CP2 project reports, and click here for a detailed profile of Plaquemines.

Germany's, meanwhile, is the largest economy in the European Union, though it's expected to face headwinds this year.

Venture's deal with Germany follows a report from the European Commission on Monday that found that Norway was the top supplier of natural gas to the European market, taking about 31% of the market share. With shale natural gas supporting steady volumes of LNG, the United States was close behind with a 24% market share.

Piped gas, meanwhile, accounted for 55% of the total EU gas imports, with the rest coming from LNG. Proposed regulation from the European Commission would phase out piped gas and LNG originating from Russia by the end of the decade.

As of now, Russian LNG accounts for 14% of the European market share in LNG.

The U.S. Energy Department expects total LNG exports to average 15 Bcf/d this year, though the market is getting saturated. Total deliveries are expected to reach 16 Bcf/d by 2026. Maintenance in midstream infrastructure has curbed the recent potential, however.

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, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).