Venture Global LNG, a leading provider of liquefied natural gas (LNG), has unveiled an expansion plan to significantly increase its production capacity. The company aims to raise its nameplate LNG export capacity from 70 million metric tons per annum (MTPA) to over 100 MTPA. The undertaking will require the installation of additional liquefaction train systems and power island systems across Venture Global's future LNG export projects.
To support this expansion initiative, Venture Global has entered into an expanded master equipment supply agreement with energy technology company, Baker Hughes. The agreement ensures the timely delivery of the necessary equipment for Venture Global's upcoming LNG projects. The announcement of this extended partnership was made during the Gastech conference in Singapore, where Venture Global's CEO, Mike Sabel, and Baker Hughes' Chair and CEO, Lorenzo Simonelli, were present.
Venture Global noted that it has been making progress on all fronts, achieving major milestones at each of its ongoing projects. The cargoes originating from its Calcasieu Pass project have already been delivered to 24 countries, accounting for approximately 10% of the total LNG exported from the United States to Europe in the past two years. Furthermore, Venture Global has successfully taken the final investment decision for both phases of its Plaquemines LNG facility, which is expected to start producing LNG in 2024. The first four liquefaction train modules, Blocks 1 and 2, have already been received, and the construction of the third LNG storage tank is underway, with the roof set to be raised by early September. Additionally, construction of the CP2 LNG facility is scheduled to commence later this year after obtaining authorization from the Federal Energy Regulatory Commission. So far, 9.25 MTPA of the facility's 20-MTPA nameplate capacity has already been sold under 20-year sale and purchase agreements.
Baker Hughes has been a strategic partner and supplier of LNG equipment to Venture Global. The company has provided comprehensive LNG technology solutions for the Calcasieu Pass LNG facilities and will continue to extend its support to the ongoing Plaquemines LNG project. By leveraging Baker Hughes' advanced technology solutions, Venture Global aims to expedite the production process, ensuring faster time to market, a key advantage of its modular LNG design.
Venture Global is excited about its long-term plan to expand LNG production in Louisiana and beyond. The company's CEO, Mike Sabel, expressed his enthusiasm in a statement announcing the expansion plans, "Now more than ever, we are committed to our mission of delivering low-cost LNG on a larger scale to meet the world's growing demand for energy security, prosperity, and environmental progress." The expansion aligns with the company's vision of providing a reliable and affordable energy source while contributing to global sustainability goals.
Lorenzo Simonelli, the Chair and CEO of Baker Hughes, emphasized the crucial role of natural gas as a bridging and destination fuel in the energy transition. At the Gastech conference, he spoke to the longstanding collaboration between Venture Global LNG and Baker Hughes and pledged continued support for the company's plan to expand LNG production in response to global energy demand. Simonelli highlighted that Baker Hughes' proven technology solutions would facilitate faster LNG production, offering a significant advantage given Venture Global's modular LNG design approach.
