Venture Global LNG said on May 10 it would supply two million tonnes per annum of LNG to Exxon Mobil Corp., a sign of its rapid rise in the ranks of LNG suppliers and the strong global demand for U.S. LNG.
Venture Global LNG, which plans to build four LNG plants using a modular design that streamlines construction and cuts production costs, has emerged as a powerful force in LNG. The company this year started exports at its first Calcasieu Pass, Louisiana, plant and the Exxon Mobil deal will help advance two other proposed facilities.
The United States has become a major player in LNG and this year is expected to surpass Australia and Qatar as the world's largest exporter, delivering more than 12.2 Bcf/d. Global demand for U.S. LNG has surged since the Russian invasion of Ukraine, which tightened an already under-supplied market.
Under the deal, Exxon Mobil’s Asia Pacific unit will purchase one million tonnes of LNG each year from Venture Global’s Plaquemines LNG facility, which is now under construction, and its planned Calcasieu Pass 2 facility. Both are in Louisiana.
The deal will help advance Exxon Mobil’s LNG sales growth in Asia and in China, already the world's largest importer of LNG. Exxon Mobil is a 30% partner with Qatar Energy in the Golden Pass LNG facility now under construction near Sabine Pass, Texas. That $10 billion facility is expected to start processing fuel in 2024.
“We look forward to working with Venture Global as we continue to grow Exxon Mobil’s LNG portfolio and progress our plans to reliably deliver natural gas from the U.S. Gulf Coast to global markets,” said Peter Clarke, Exxon's senior vice president of LNG.
Venture Global, founded by a former energy lawyer and investment banker, has rocketed to the top ranks of LNG developers with its ability to obtain financing and rapidly build plants as rivals struggled. Its Calcasieu Pass plant was producing LNG 29 months after receiving a financial go-ahead.
Recommended Reading
Upstream, Midstream Dividends Declared in the Week of July 8, 2024
2024-07-11 - Here is a selection of upstream and midstream dividends declared in the week of July 8.
Dividends Declared in the Week of July 22
2024-07-25 - Second quarter earnings are underway, and companies are declaring dividends.
Dividends Declared in the Week of Aug. 2
2024-08-02 - Here is a selection of dividends declared for the week of Aug. 2 for a selection of upstream, midstream and service & supply companies.
Solaris Stock Jumps 40% On $200MM Acquisition of Distributed Power Provider
2024-07-11 - With the acquisition of distributed power provider Mobile Energy Rentals, oilfield services player Solaris sees opportunity to grow in industries outside of the oil patch—data centers, in particular.
Liberty Energy Warns of ‘Softer’ E&P Activity to Finish 2024
2024-07-18 - Service company Liberty Energy Inc. upped its EBITDA 12% quarter over quarter but sees signs of slowing drilling activity and completions in the second half of the year.