Venture Global to supply additional LNG to German firm from Calcasieu Pass 2

Venture Global VG 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 EBK.