WASHINGTON, Feb. 8, 2016 /PRNewswire/ -- Venture Global LNG, Inc. ("Venture Global LNG") is pleased to announce that its subsidiary, Venture Global Calcasieu Pass, LLC ("Venture Global Calcasieu Pass"), has entered into a sales and purchase agreement ("SPA") with Shell NA LNG LLC ("Shell"), under which Shell has agreed to purchase one million tonnes per annum ("MTPA") of liquefied natural gas ("LNG") from Venture Global Calcasieu Pass's LNG export facility under development in Cameron Parish, Louisiana.
The SPA has a term of twenty years commencing on the commercial operation date of the Venture Global Calcasieu Pass facility with a Shell option to extend the term. Under the SPA, Shell will purchase LNG on a free on board basis (FOB) for a purchase price indexed to the monthly Henry Hub price plus a facility fee indexed to inflation.
Mike Sabel and Bob Pender, Co-CEOs of Venture Global LNG, jointly announced that "Venture Global LNG considers the Shell 20-year SPA to be an important milestone for the company. We are delighted that we continue to achieve our promised milestones as we implement our strategy to become the lowest cost producer of LNG in the world."
Venture Global LNG is developing both the 10 MTPA Venture Global Calcasieu Pass facility on an approximately 1,000-acre site located at the intersection of the Calcasieu Ship Channel and the Gulf of Mexico, and the 20 MTPA Venture Global Plaquemines LNG facility in Plaquemines Parish, Louisiana on an approximately 630-acre site at river mile marker 55 on the Mississippi River, which is approximately 30 miles south of New Orleans, Louisiana.
About Venture Global LNG. Venture Global LNG plans to be a long-term, low-cost producer of LNG, capitalizing on low-cost natural gas production in the U.S. Venture Global LNG's strategy uniquely utilizes a highly efficient, mid-scale LNG liquefaction technology. More can be found at www.venturegloballng.com.
SOURCE Venture Global LNG, Inc.