BP Inks 2M Metric Ton LNG Purchase Deal With Venture Global
Zacks Investment Research | May 21, 2018 10:09PM ET
BP plc (LON:BP) (NYSE:BP) has inked a 20-year agreement with Venture Global to purchase liquefied natural gas (LNG) for finalizing commitments for the Calcasieu Pass export facility based in Louisiana. Notably, Venture Global is a U.S. LNG group.
Upon completion of construction of the facility, expected to come online in 2022, BP will buy 2 million metric tons per year of LNG. Per the terms, BP will buy LNG on a free-on-board basis for 20 years, which will enable the company to sell the fuel in the market.
The Calcasieu Pass facility will have a capacity of 10 million tons per year. Venture Global is also undertaking developmental operations at the Plaquemines LNG facility. The unit is located on the Mississippi River south of New Orleans and will have a capacity of the 20 million metric tons per year.
To date, Venture Global has raised $525 million for the development of the Calcasieu Pass and the Plaquemines LNG facilities.
The confirmation of the deal takes the total purchase commitment to 6 million tons at the Louisiana facility. Venture Global has also signed agreements with Royal Dutch Shell (LON:RDSa) plc Original post
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