Venture Global LNG signed 20-year deal to sell some of its liquefied natural gas to a French utility business from its proposed Plaquemines Parish export terminal in Louisiana.
Électricité de France S.A., also known as EDF, agreed to buy 1 million tons of LNG from Venture Global as soon as the facility begins operations.
The $8.5 billion LNG project already has an agreement with the Polish Oil and Gas Co. for 2.5 million tons of liquefied natural gas each year from the Plaquemines terminal starting in 2023.
The company is expected to make a final investment decision in mid-2020 for the facility, which could begin construction around the same time and export 20 million tons each year.
The project, which sits on a 630-acre site about 20 miles south of New Orleans, has been navigating the federal regulatory process to export LNG and securing local permits. It expects to begin some site work in March.
In 2016, the company predicted that construction would begin in 2018 and it would be operational by 2022.
It expects to hire 250 workers at the terminal, and is projected to support up to 2,200 construction jobs.
Arlington, Virginia-based Venture Global has three LNG projects planned in the state, two of which are in Plaquemines Parish in southeast Louisiana and the third in Cameron Parish in the southwestern corner of the state. All of its projects have been delayed so far.
Its $4.5 billion Cameron Parish Calcasieu Pass LNG terminal began construction in mid-2019 on the 10 million ton per year facility. In 2014, the company had predicted its Cameron Parish site would already be exporting LNG by 2019.
The second Plaquemines Parish site, which could cost another $8.5 billion and is known as Delta LNG, could also export about 20 million tons of LNG per year but won't be operational until 2024.
The export facilities are feeding off an abundance of natural gas being produced from U.S. shale formations around the country that are being tapped with advanced drilling technology.
Net exports of U.S. natural gas doubled for the second year in a row, according to data released this week by the U.S. Energy Information Admi…
Institutional investment banks are so bullish about Venture Global LNG's plans for export facilities in Louisiana that the company significant…