New SPA to Spur Long-Term U.S. Natural Gas Supply to Germany

SEATTLE (Oil Monster): Venture Global LNG and EnBW announced major expansion of their existing liquefied natural gas (LNG) partnership, so as to bolster natural gas supplies to Germany. The strategic decision comes at a time when Germany looks to diversify its energy mix, as part of its strategy to reduce its reliance on Russian natural gas. This in Venture’s first such agreement with a German company.

According to the long-term sales and procurement agreement (SPA) recently signed between the two parties, EnBW will expand the volume of LNG offtake from Venture Global by an additional 0.5 million metric tons/year (mmty) to 2 mmty from its two Louisiana natural gas export facilities-Plaquemines and CP2 LNG.

Commenting on the development, Mike Sabel, CEO, Venture Global noted that the company is delighted to be a growing strategic partner to Germany and EnBW. It is honoured to support German government’s efforts to address energy crisis by providing security of US LNG supply, he added.

Meantime, Georg Stamatelopoulos, Chief Operating Officer Generation & Trading at EnBW said that the company aims to support the German government by providing enhanced access to LNG supplies, thus helping it to become less dependent on Russian natural gas.