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Venture Global signs new LNG Supply Deals with TotalEnergies and Vitol

Venture Global announced on Tuesday that it had signed new LNG supply contracts with TotalEnergies, and trading house Vitol for combined sales of over 1 million metric tonnes per annum (mtpa), over the next five-year period. Mike Sabel, the CEO of Venture Global, said on a Tuesday earnings call that the company charges customers more than twice the price of long-term LNG for the five-year contracts. This reduces the risk profile.

Sabel said, "It gives us the opportunity to blend out...the risks with much higher prices than 20-year contracts. We can double our long-term contracts." These deals bring the total number of new liquefied gas sales agreements that the U.S. has secured since the start of the Iran War to just under?3,000,000 mtpa. This reflects the increased demand for U.S. shipments due to the continued closure of the Strait of Hormuz.

Venture Global said that under the new contracts it will sell 0.85 million mtpa LNG to TotalEnergies, and increase the previously contracted volumes to Vitol by an additional 0.2 million mtpa. Deliveries are expected to begin this year. Vitol signed a deal in late March for 1.5 million mtpa. Venture Global ?had also previously inked a 500,000-metric-ton-per-year deal with Trafigura on March 2.

Sabel stated that "these agreements demonstrate the continued trust and confidence in Venture Global's capability to deliver reliable, low-cost U.S. Liquefied Natural Gas to global markets at a scale and speed as demand for energy security continues to grow." Venture Global's agreement with TotalEnergies is the first long-term contract that Venture Global has signed to sell LNG to the French giant. Total had previously bought cargoes on the spot market.

Sabel stated that by offering customers short, medium and long-term options for supply, we provide the flexibility and assurance they need to "deliver LNG where and when it is most needed." Venture Global is the only U.S. company that has more LNG available for immediate sale. This is because its Plaquemines plant in Louisiana (the country's largest export facility) ramps up production as it commissions. Reporting by Curtis Williams, Houston; Editing by Lincoln Feast and Deepa Babyington

(source: Reuters)