By Katha Kalia
(Reuters) -Venture Global will supply an additional 0.75 million tonnes per annum of liquefied natural gas to Germany-based distributor SEFE Energy GmbH, the two companies said on Wednesday.
Shares of the U.S. LNG producer rose 1.7% in morning trade.
Venture Global will supply the LNG from Calcasieu Pass 2 (CP2) project for 20 years, bringing the total volume of purchase by SEFE – short for Securing Energy for Europe – to 3 mtpa.
“We expect Venture Global could announce additional long-term supply purchase agreements for CP2 to achieve their targeted 2-5 mtpa of additional long-term SPAs at CP2,” said Elvira Scotto, analyst at Capital Markets.
Scotto added that any additional agreements could be positive catalysts for the stock, which is down about 33% since its listing in January.
Venture Global’s CP2 project – which has a capacity of 20 mtpa and is set to deliver its first LNG in 2027 – will be the single-largest export facility of the superchilled gas in the U.S.
The company is expected to become Germany’s largest LNG supplier, with a combined 5 mtpa offtake 20-year agreements with German companies SEFE and Energie Baden Wuerttemberg AG.
(Reporting by Katha Kalia in Bengaluru; Editing by Leroy Leo and Sriraj Kalluvila)
