Repsol Signs 20-Year LNG Supply Deal with Calcasieu Pass Developer
Repsol has entered into a 20-year, binding sales and purchase agreement for the supply of 1 million tonnes per annum (mtpa) of liquefied natural gas from the proposed 10-mtpa Venture Global Calcasieu Pass LNG export facility in southwestern Louisiana, Venture Global LNG, Inc. reported Friday.
According to Venture Global, Repsol will purchase LNG on a free on board basis for a 20-year-term that begins when the mid-scale LNG terminal, currently under development in Cameron Parish, La., begins commercial operations. Pending a final investment decision and other conditions, Venture Global stated that it expects commercial operations to start in 2022.
In a joint statement emailed to Rigzone, Venture Global co-CEOs Mike Sabel and Bob Pender noted that the Repsol agreement marks a “significant milestone as we accelerate the development” of Calcasieu Pass LNG. The company’s website states that the project, planned for a 930-acre site south of Lake Charles on the Calcasieu Ship Channel near the Gulf of Mexico, will boast:
- Nine 1.2-mtpa liquefaction blocks on a site with more than a mile of deepwater frontage
- Two 200,000-cubic meter full-containment LNG storage tanks
- A marine terminal with two ship loading berths capable of accommodating LNG carriers up to 185,000 cubic meters in capacity
- The TransCameron Pipeline, a single 42-inch-diameter, 24-mile-long natural gas pipeline that will interconnect with major interstate and intrastate gas pipelines
- An electrically driven, 611-megawatt combined cycle gas turbine power plant with an additional 25-MW gas-fired turbine
“We are delighted that Repsol, supporting the innovative, low-cost approach Venture global is deploying at both Calcasieu Pass LNG and Plaquemines LNG, will be joining our existing, high quality partners: Shell, Edison SpA, Galp, BP and PGNiG of Poland,” Sabel and Pender stated.
Venture Global’s Calcasieu Pass and Plaquemines projects are two of three proposed LNG export projects in Louisiana with pending FERC applications. Based on the project timeline on its website, the company expects to receive necessary FERC and U.S. Department of Energy approvals in early 2019 followed shortly thereafter by a final investment decision and the start of construction. The project, which would incorporate modular technology, would create approximately 1,500 jobs at peak construction and 130 long-term, direct jobs.
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