Venture Global signs 20-year LNG deal with PETRONAS; initiates CP2 site work in Louisiana

Venture Global, Inc. (NYSE: VG) has formally entered into a 20-year Sales and Purchase Agreement (SPA) with PETRONAS LNG Ltd., a subsidiary of Malaysia’s state-owned oil and gas corporation Petroliam Nasional Berhad (PETRONAS). The agreement will see PETRONAS purchase 1 million tonnes per annum (MTPA) of liquefied natural gas (LNG) from Venture Global’s CP2 LNG facility—currently under construction in Cameron Parish, Louisiana. This new SPA builds on an earlier agreement between the two companies, under which PETRONAS had committed to another 1 MTPA from Venture Global’s Plaquemines LNG terminal.

The announcement comes as Venture Global commences full-scale site work at CP2 LNG following the receipt of final federal regulatory approvals from the Federal Energy Regulatory Commission (FERC) and non-Free Trade Agreement (non-FTA) export authorization from the U.S. Department of Energy.

How does the 20-year PETRONAS agreement enhance long-term LNG demand visibility for CP2 investors?

The long-term agreement with PETRONAS is significant for institutional investors seeking offtake-backed certainty in an otherwise volatile LNG market. As of July 2025, Venture Global has sold roughly 10.75 MTPA of the 14.4 MTPA nameplate capacity for CP2 LNG Phase One, with PETRONAS joining a growing list of buyers from Europe, Asia, and Latin America. By locking in another 1 MTPA under this new agreement, Venture Global continues to de-risk its project execution timeline and operating model—one that prioritizes firm sales contracts before financial close.

Investor sentiment has been broadly supportive of Venture Global’s “design one, build many” strategy. The American LNG exporter’s modularized facility architecture allows for prefabricated units to be constructed offsite, reducing cost and accelerating time-to-market. Analysts note that this approach was successfully validated at the Calcasieu Pass and Plaquemines LNG facilities, both of which hit commissioning milestones ahead of traditional timelines.

For PETRONAS, the deal signals a continued push to diversify LNG sourcing beyond its home markets in Southeast Asia. Malaysia’s state-owned energy major has actively expanded its trading and terminal assets globally, and the CP2 LNG deal positions it to meet future demand in high-growth Asian economies like Vietnam, India, and the Philippines.

What is the current status of Venture Global’s CP2 LNG project and associated pipeline infrastructure?

The CP2 LNG project marks Venture Global’s third export terminal development since its founding. Located on a 1,150-acre site adjacent to Calcasieu Pass in Cameron Parish, Louisiana, the project is designed to export at least 20 MTPA of LNG once fully operational. The CP Express pipeline, originating in Jasper County, Texas and passing through Newton County and Calcasieu Parish, will supply natural gas feedstock to the facility.

Following FERC’s final environmental approval in May 2025 and the Department of Energy’s export clearance in June, Venture Global mobilized its construction workforce and equipment to the CP2 site. Site work officially began in early July, with civil works, marine facility preparation, and module placement activities now underway.

At peak construction, CP2 LNG is expected to support around 7,500 direct construction jobs and an additional 20,000 indirect jobs across more than 30 U.S. states. Once operational, the facility will create 400 permanent jobs and is projected to pay over $4 billion in local property taxes over its lifetime.

Institutional interest in CP2 has grown steadily in response to the project’s fast-tracked regulatory clearances and ongoing offtake momentum. Analysts estimate the total project cost could exceed $13 billion, with final investment decision (FID) expected in the second half of 2025, depending on financing milestones and equipment delivery schedules.

How does Venture Global’s facility expansion strategy position it in the global LNG export race?

Venture Global’s modular expansion model and aggressive construction timelines have allowed it to position itself as one of the fastest-scaling LNG exporters globally. The American LNG developer began producing LNG at Calcasieu Pass in January 2022 and achieved full commercial operations by April 2025. Its second facility, Plaquemines LNG, began initial LNG exports in December 2024, well ahead of projections.

With over 100 MTPA of nameplate capacity currently under construction or development, Venture Global is expected to become the largest U.S. LNG exporter and the second-largest globally—surpassing several established players within a span of less than a decade.

This growth comes at a time when U.S. LNG is increasingly viewed as a pillar of energy security by European and Asian allies. Since the 2022 energy crisis triggered by the Russia-Ukraine war, demand for long-term, stable U.S. LNG contracts has soared. Venture Global has capitalized on this structural demand shift with over 80% of its contracted volume targeting markets in Europe, Japan, and South Korea.

The company’s strategy also includes Carbon Capture and Sequestration (CCS) at all of its new facilities. CCS projects are under development at Calcasieu Pass, Plaquemines LNG, and CP2, aimed at aligning future LNG output with tightening global emission standards and the U.S. Inflation Reduction Act.

What are the financial and regulatory risks that could affect CP2 LNG’s progress toward a 2027 startup?

Despite positive sentiment around the PETRONAS agreement and the start of site work, analysts warn that several risk factors remain. Financing risk is one of the most closely watched variables. Venture Global recently raised $4 billion in senior-secured notes to fund ongoing work at Plaquemines LNG and is expected to seek additional debt and equity for CP2.

The ability to achieve financial close for CP2 will depend on a combination of customer-backed sales agreements, EPC (engineering, procurement, and construction) cost control, and regulatory stability. FERC’s scrutiny of emission mitigation, environmental justice concerns, and water use remains a critical variable. In May 2025, environmental groups filed a motion seeking additional review of CP2’s cumulative emissions footprint, although this has not yet resulted in litigation.

Further, while non-FTA export approvals have been granted, shifting U.S. trade dynamics and geopolitical tensions could introduce macro risk to LNG exports to non-aligned countries. PETRONAS, however, remains a low-risk buyer in this context, given Malaysia’s neutral foreign policy and long-term ties with the U.S.

On the equipment side, global shortages in LNG heat exchangers, turbines, and control systems—many of which are sourced from Asia and Europe—could cause bottlenecks. Venture Global’s use of multiple global suppliers and parallel procurement strategies has helped mitigate this, but construction timelines will remain sensitive to delays in logistics and customs clearance.

What does the PETRONAS–Venture Global deal indicate about future LNG contract structures and market alignment?

This SPA reflects a broader trend in the LNG industry: a pivot back toward long-term contracts after a decade dominated by spot trading. Buyers are increasingly willing to commit to 15- to 20-year contracts to secure supply stability, particularly from North America where infrastructure is expanding and upstream gas basins remain prolific.

For PETRONAS, the deal is also part of a commercial repositioning. The Malaysian energy firm is both a major LNG producer and a growing trader, leveraging deals like this one to optimize its global portfolio across time zones and pricing indices. Venture Global’s contracts are typically priced off Henry Hub with destination flexibility, which aligns with PETRONAS’ strategy to arbitrage LNG across the Atlantic and Pacific basins.

Analysts expect that more Southeast Asian buyers—including those in Indonesia, Vietnam, and Thailand—could follow PETRONAS in signing long-term contracts with U.S. exporters to mitigate supply shocks and price volatility stemming from regional underinvestment in LNG import terminals.

How are analysts and institutional investors evaluating Venture Global’s position in the U.S. energy infrastructure market?

Institutional investors and sovereign wealth funds have shown growing interest in Venture Global’s pipeline of projects. While CP2 remains under construction, early offtake success and the start of site work signal that the project is advancing toward final investment decision within expected timeframes.

Market analysts expect Venture Global to finalize additional SPAs in 2025, especially from European buyers seeking to lock in U.S. gas ahead of decarbonization deadlines and carbon border tax enforcement in the EU.

The company’s strategic location in Louisiana—close to major gas basins and shipping lanes—gives it a competitive edge. Moreover, its CCS-integrated LNG model may position Venture Global favorably in future carbon-neutral LNG markets.

Sentiment remains largely positive, with many institutions citing Venture Global’s ability to deliver projects on schedule as a differentiator in an increasingly crowded LNG landscape. However, attention remains on how the developer manages construction costs, emission compliance, and global demand signals amid tightening energy transition frameworks.