Two new deals show U.S. LNG orders piling up

Dec. 27 (UPI) -- While Russian gas supplies are at a premium due to Western sanctions, foreign energy companies are courting U.S. suppliers of liquefied natural gas, with two major deals announced Tuesday.

Russia was a main supplier of essential commodities from crude oil, natural gas and grains before its military forces invaded Ukraine in February. Western sanctions imposed since then have forced importers to look for alternative suppliers to fill the void.

Japanese energy company Inpex on Tuesday announced the signing of a 20-year sale and purchase agreement with U.S.-based Venture Global LNG.

"This agreement will enable the INPEX Group to procure LNG from the United States -- one of the world's leading LNG exporters -- on a long-term basis, expand its LNG supply capacity and diversify its supply sources to further contribute to the stable supply of energy worldwide," Inpex stated.

Inpex under the terms of the agreement committed to buying 1 million tons of LNG from the second phase of Venture Global's Calcasieu Pass terminal in Louisiana. Slated for a 546-acre site in Cameron Paris, La., the facility will boast a peak capacity of 24 million tons per year, boosting overall LNG export capacity from the United States.

Shale production, combined with the pursuit of supplies from anywhere but Russia, has put the United States in something of a pole position in terms of LNG exports. Total LNG export volumes during the seven-day period ending Dec. 21 were up 66% compared to the similar week in 2019, to discount the impact of the COVID-19 pandemic and the war in Ukraine.

Not to be outdone, U.S.-based NextDecade Corp. said Tuesday it revised an LNG sale and purchase agreement with Singapore's ENN LNG to allow for an increase in deliveries.

ENN under the terms of the new deal agreed to purchase 2 million tons of LNG per year from NextDecade's planned export terminal in Rio Grande, Texas, an increase of 33% from the original agreement.

NextDecade plans to make a final investment decision on Rio Grande during the first quarter of 2023.