Venture Global and Grain LNG Forge New Deal to Bolster UK Natural Gas Supply Security

By Venture Global LNG

Arlington- In a significant development, Grain LNG and Venture Global have entered into a binding long-term terminal use agreement (TUA) to facilitate the regasification and sale of LNG from Venture Global’s terminals in Louisiana, including CP2 LNG. The agreement grants Venture Global access to 3 million tonnes per annum (3MTPA) of LNG storage and regasification capacity at the Isle of Grain LNG receiving terminal for a duration of sixteen years, commencing in 2029. This capacity equates to up to 5% of the average UK gas demand, reinforcing the security of supply of natural gas to the United Kingdom.

Grain LNG’s competitive auction process, initiated in September 2023, has yielded this second agreement, further solidifying the future of Europe’s largest LNG import terminal until the mid-2040s. Currently undergoing expansion, Grain LNG is set to accommodate approximately one third of the UK’s gas demand, positioning itself as a key gateway to the UK energy market and wider European region. Amidst a surge in LNG imports to the UK and Europe, this agreement marks a pivotal step in diversifying LNG sources and ensuring energy security.

With significant volumes across its projects, including Calcasieu Pass, Plaquemines LNG, and CP2 LNG, Venture Global reinforces its role as a strategic LNG supplier to Europe. This investment enhances flexibility and access to Venture Global’s volumes, crucial for the UK and Europe’s efforts to diversify LNG sources. Notably, Venture Global has directed approximately 75% of its cargoes to Europe to date.

Mike Sabel, CEO of Venture Global, expressed enthusiasm about the company’s inaugural investment in LNG infrastructure outside the United States, emphasizing the strategic significance of the Grain LNG terminal as an entry point to the broader European market.

Katie Jackson, President of National Grid Ventures, welcomed the partnership with Venture Global, highlighting the importance of LNG imports in ensuring reliable gas supply across the UK. The agreement underscores the UK’s commitment to energy security and the continued operation of the Grain LNG terminal until 2045.