Venture Global to supply additional 750,000 tpy of LNG to Germany-based SEFE
Venture Global will supply an additional 0.75 MMtpy of liquefied natural gas (LNG) from Calcasieu Pass 2 to Germany-based distributor SEFE Energy GmbH, the two companies said on Wednesday.
Shares of the U.S. LNG producer rose 1.7% in morning trade.
Venture Global will supply the LNG from Calcasieu Pass 2 (CP2) project for 20 yr, bringing the total volume of purchase by SEFE - short for Securing Energy for Europe - to 3 MMtpy.
"We expect Venture Global could announce additional long-term supply purchase agreements (SPAs) for CP2 to achieve their targeted 2 MMtpy–5 MMtpy of additional long-term SPAs at CP2," said Elvira Scotto, analyst at Capital Markets.
Scotto added that any additional agreements could be positive catalysts for the stock, which is down about 33% since its listing in January.
Venture Global's CP2 project - which has a capacity of 20 MMtpy and is set to deliver its first LNG in 2027 - will be the single-largest export facility of the superchilled gas in the U.S.
The company is expected to become Germany's largest LNG supplier, with a combined 5 MMtpy in offtake 20-yr agreements with German companies SEFE (learn more) and Energie Baden Wuerttemberg AG.
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