HOUSTON, May 12 (Reuters) - Two long-term supply deals
struck this week by liquefied natural gas developer Venture
Global LNG put its second Louisiana LNG facility on the verge of
construction and financing approval, analysts said.
Supply deals - with Exxon Mobil and Malaysian
state-oil firm Petronas - secured buyers for 80% of the plant's
projected 20 million tonnes per annum (MTPA) capacity, a
milestone that often triggers the major financial commitment
known as FID.
"Eighty percent is a good number for Venture Global to
authorize FID," said Ben Chu, head of trading analytics and
proprietary data, natural gas at consultants Wood Mackenzie. The
company took FID on its first plant at about the same share, he
A Venture Global LNG spokesperson declined to comment. In
March, the company said the FID and project financing would come
The Petronas and Exxon Mobil contracts follow purchase
agreements with China Petroleum & Chemical, Shell
, and New Fortress Energy for the plant.
Early work on the Plaquemines LNG plant, which is located
about 20 miles (32 kilometers) south of New Orleans, began last
year. Venture Global LNG targets first export of LNG from the
site by the end of 2024, according to a federal filing.
Venture Global LNG plants are designed with modular
liquefaction units prebuilt in factories and put together onsite
to expedite construction.
It has proposed four LNG facilities in Louisiana.
(Reporting by Marcy de Luna in Houston; Editing by Lisa