Venture Global signs new LNG supply deals with TotalEnergies, Vitol

By Curtis Williams

HOUSTON, May 12 (Reuters) - Venture Global VG.N said on Tuesday it has signed new LNG supply agreements with TotalEnergies TTEF.PA and trading house Vitol covering combined sales of just over 1 million metric tons per annum (mtpa) for the next five years.

The deals bring total new liquefied natural gas sales agreements secured by the U.S. exporter since the outbreak of the Iran war to just over 3 million mtpa, reflecting increased global demand for U.S. shipments as Middle East cargoes remain blocked by the closure of the Strait of Hormuz.

Under the new contracts, Venture Global will sell 0.85 mtpa of LNG to TotalEnergies and increase its previously contracted volumes with Vitol by 0.2 mtpa to 1.7 mtpa, with deliveries starting this year, the company said in a statement. Vitol's initial deal for 1.5 million mtpa was signed in late March.

Venture Global had also previously inked a 500,000-metric tons per year deal with Trafigura on March 2.

"These agreements reflect the continued confidence and trust in Venture Global’s ability to deliver reliable, low-cost U.S. LNG to global markets quickly and at scale as demand for energy security continues to grow," Chief Executive Mike Sabel said.

The agreement with TotalEnergies marks the first time Venture Global has sold LNG to the French major under a long-term contract, although Total has previously purchased cargoes from the company on the spot market.

"By offering customers short-, medium- and long-term supply options, we are providing the flexibility and certainty they need to deliver LNG where it is needed most," Sabel said.

Venture Global has more LNG available for near-term sale than any other U.S. exporter, as its 27.2 mtpa Plaquemines LNG plant in Louisiana, the country’s second-largest export facility, ramps up production during commissioning.