Venture Global to Acquire 9 New LNG Ships

Venture Global LNG Inc. is acquiring a fleet of nine liquefied natural gas (LNG) powered vessels.

The vessels are being constructed in South Korea and are set to be delivered later in the year, Venture Global said in a news release Monday. All nine ships will deploy “best-in-class environmental and efficiency technology” and will be primarily fueled by the company’s LNG, it said. The purchase price was not disclosed.

Six vessels will have a cargo capacity of 6.1 million cubic feet (174,000 cubic meters) while the other three will have a cargo capacity of 7.1 million cubic feet (200,000 cubic meters).

“Venture Global is pleased to announce our new fleet of world-class, next generation LNG vessels, further strengthening our growing role as a major global energy provider”, Venture Global CEO Mike Sabel said. “This investment builds on our recent execution of a long-term terminal use agreement for regasification capacity at Europe’s largest LNG import terminal, further advancing the integration of our business across the entire LNG supply chain; from natural gas transmission, to liquefaction and export, to best-in-class LNG cargo ships and regasification capacity”.

“This will be complementary to our core business as a supplier to long-term customers while also enabling optimization and optionality by allowing for the transport of LNG directly to the customer’s point of need”, Sabel added. “We are sending a strong signal to the global market of our long-term commitment to meeting the world’s growing energy demand at a large scale, bolstering the security of our customers and allies by providing them with clean, affordable, and reliable U.S. LNG as efficiently as possible”.

According to the release, the vessels will be propelled by the latest 2-stroke MEGA/MEGI engines which, in combination with the use of the most recent hull forms, shaft generator and air lubrication systems, result in the highest fuel efficiency and lowest GHG emissions based on currently available LNG carrier technology.

“The selected main engine type supported by the shaft generator technology significantly reduces methane slip compared to the previous generations of 2-stroke and 4-stroke propelled LNG carriers”, Venture Global said, adding that using LNG to power the vessels will result in significant reduction in pollutants and 25 percent lower carbon dioxide emissions compared to regular ships.

Venture Global in February signed a have signed a binding long-term terminal use agreement with Grain LNG enabling the regasification and sale of liquefied natural gas LNG from all of Venture Global’s terminals in Louisiana, including CP2 LNG, subject to obtaining necessary federal permits.

Under the agreement, Venture Global will have the ability to access three million metric tons per annum (mtpa) of LNG storage and regasification capacity at the Isle of Grain LNG receiving terminal in the United Kingdom (UK) for 16 years beginning in 2029.

Demand for gas in Europe is driving $223 billion in new investments globally in the next decade, according to a study from climate activist group Global Witness, citing data from Rystad Energy.

Venture Global LNG and Cheniere Energy Inc. are set to lead spending on new developments going forward, along with TotalEnergies SE and Equinor ASA. In total, the fossil fuel industry is set to invest $1 trillion in gas production for Europe through 2033, according to the report.

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