Edison in 20-year deal to buy US LNG from Venture Global
Edison, the Italian energy group owned by France’s EDF, signed a long-term deal to buy 1 million tons per year of liquefied natural gas (LNG) from Venture Global’s Calcasieu Pass facility in Louisiana.
Under the deal, Edison will purchase LNG on a free-on-board basis for a period of 20 years starting from the commercial operation date of the Calcasieu Pass facility, the duo said in a joint statement.
The LNG export facility is expected to start operations in 2021.
“This agreement will contribute to Edison’s gas supply portfolio competitiveness and diversification, further enhancing Edison’s ability to meet the group’s customers’ requirements,” the statement said.
The Calcasieu Pass facility, located at the intersection of the Calcasieu ship channel and the Gulf of Mexico, will consist of nine 1.2 million ton liquefaction units and two 200,000-cbm LNG storage tanks, according to Venture Global’s website.
The US company is also developing a second project in Lousiana, in Plaquemines Parish.
Combined, these two projects are expected to have about 30 million tons of LNG production capacity.