Shell to purchase LNG from Venture Global’s $4.25bn Calcasieu Pass facility in US

Venture Global Calcasieu Pass has signed an agreement to supply one million tonnes per annum (MTPA) of liquefied natural gas (LNG) to Shell from its $4.25bn Calcasieu Pass facility being developed in Louisiana, US.

The Venture Global Calcasieu Pass facility has a design capacity of 10MTPA of LNG and is being developed on an approximately 1,000-acre site located at the intersection of the Calcasieu Ship Channel and the Gulf of Mexico.

The agreement with Venture Global’s subsidiary is for a period of 20 years and would commence from the date the facility begins operations.

Shell, which can also extend the term of the agreement, will purchase LNG on a free on board basis.

Venture Global co-CEOs Mike Sabel and Bob Pender jointly announced: "Venture Global LNG considers the Shell 20-year SPA to be an important milestone for the company.

"We are delighted that we continue to achieve our promised milestones as we implement our strategy to become the lowest cost producer of LNG in the world."

Calcasieu Pass will house two ship-loading berths for LNG vessels, two full-containment LNG storage tanks as well as an on-site combined cycle gas turbine power plant.

Construction on the facility is scheduled to begin in late 2016 with full operations expected in late 2019.

Venture Global is also constructing the Venture Global Plaquemines LNG facility in Plaquemines Parish, Louisiana which will have a capacity of 20MTPA.

The site is being developed on a 630-acre site at river mile marker 55 on the Mississippi River about 30 miles south of New Orleans, Louisiana.