USA's Venture Global LNG Secures 20 Year Contract To Supply LNG To Japan's JERA

Venture Global LNG, based in the United States, announced a 20-year contract to supply liquefied natural gas (LNG) to Japan's JERA.

Venture Global said in a statement that its CP2 LNG project will sell 1 million tonnes per annum (mtpa) of LNG to JERA, Japan's largest power generator and one of the world's largest LNG buyers.

CP2 LNG is Venture Global's third project, with construction set to begin later this year. According to a statement, more than a third of its nameplate capacity has been sold thus far.

"To date, the company has announced sales and purchase agreements for more than a third of its 20 million tonne per annum nameplate facility, with active discussions for the remainder of its capacity ," it said

"This is a destination free free-on-board (FOB) contract, which allows JERA to secure LNG in a highly flexible manner and is expected to help with our capability to respond to volatility in domestic electricity supply and demand," it added, citing Sunao Nakamura, JERA senior managing executive officer, optimisation.

JERA said in a statement on Friday that it will buy LNG for 20 years from the start of commercial operations at CP2.

In Louisiana, Venture Global has approximately 70 mtpa of LNG export capacity in operation, construction, or development, including the 10-mtpa Calcasieu Pass (operation and construction), the 20-mtpa Plaquemines (construction), the 20-mtpa Delta (development), and the 20-mtpa CP2.

In February, Venture Global agreed to supply China Gas Holdings with a total of 2 million tonnes of LNG per year. For the next 20 years, China Gas will receive 1 million tonnes of LNG per year from Venture Global's Plaquemines LNG and CP2 LNG.