US liquefied natural gas (LNG) developer Venture Global will supply Malaysia’s Petronas with 1 million tonnes per year (t/y) of LNG for a 20-year term after the pair signed a new deal. Significantly, Asian LNG buyers, such as Petronas, are increasingly locking in new long-term supplies as more European buyers enter the race for LNG.
The LNG will be supplied from Venture Global’s Plaquemines facility and the latest deal means 16 million t/y of the 20 million t/y nameplate capacity of the export complex has been contracted, the company said Wednesday.
“Venture Global is proud to begin a new, long-term supply partnership with Petronas, a world renowned and experienced leader in global LNG engineering and operations,” said Venture Global CEO Mike Sabel. “This contract represents a significant expansion of our existing customer base in Asia and we particularly look forward to Petronas bringing our competitive, lower carbon energy into Southeast Asia, a region with rapidly growing gas demand.”
Petronas Vice President of LNG Marketing & Trading, Shamsairi Ibrahim said, “Petronas looks forward to the long-term LNG partnership with Venture Global which will support the growth and accessibility of natural gas. With the growing demand for energy security, the addition of the new volume certainly enhances Petronas’ global supply portfolio and demonstrates our support of the energy transition towards a lower carbon future.”
Venture Global’s first facility, Calcasieu Pass, commenced producing LNG in January 2022. The company is also constructing or developing an additional 60 million t/y of production capacity in Louisiana to provide clean, affordable energy to the world. The company said it is developing carbon capture and sequestration (CCS) projects at each of its LNG facilities.