Story
Venture Global Secures 20-Year LNG Supply Deal With ConocoPhillips
Summary
Liquefied natural gas supplier Venture Global has entered into a two-decade supply agreement with ConocoPhillips for 1.0 million tonnes per annum, sending its shares higher in extended trading.
Venture Global Inc. (NYSE:VG) has secured a long-term supply agreement with energy major ConocoPhillips (NYSE:COP) for liquefied natural gas (LNG), a deal that extends its contracted sales commitments two decades into the future. Following the announcement on Thursday, Venture Global's shares climbed 3% in after-hours trading.
Agreement Details
Under the terms of the Sales and Purchase Agreement (SPA), ConocoPhillips will purchase 1.0 million tonnes per annum (MTPA) of LNG from Venture Global. The contract has a duration of 20 years, with deliveries scheduled to begin in 2030.
This agreement adds a significant U.S. energy producer to Venture Global's customer portfolio and underscores the continued strong global demand for American LNG. The deal locks in a long-term revenue stream for Venture Global, providing more certainty for its large-scale export projects.
AdStrategic Context
"Venture Global is proud to welcome ConocoPhillips, one of the world's leading energy companies, as a long-term partner," said Venture Global CEO Mike Sabel in a statement. He added that the agreement reflects market confidence in the company's ability to deliver low-cost U.S. LNG.
Venture Global began LNG production in 2022 and has rapidly become one of the largest exporters in the United States. The company reports having over 100 MTPA of export capacity either in operation, under construction, or in development across its three Louisiana projects: Calcasieu Pass, Plaquemines LNG, and CP2 LNG.
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