On 6th March, Venture Global announced that it had agreed to double its gas sales with Shell North America LNG from 1mtpa to 2mtpa under an amendment to the earlier gas sales agreement for LNG from Calcasieu Pass.
This brings the total committed capacity to 3mtpa with Edison having agreed 1mtpa in September 2017. The sale contracts are for 20 years and under FOB terms. The counterparties to date provide validation of the attractiveness of the project being one of the lower cost, mid-scale liquefaction projects and shows confidence in it going ahead and being able to deliver LNG in a reasonable timescale.
The Calcasieu Pass project is for 10mtpa with easy access to the sea and more than a mile of deep water frontage. It is waiting for non-FTA export approval later in 2018 following which it will look to take FID dependent on securing of further gas sales contracts. Venture Global sees first commercial operations at the end of 2021.
