Venture Global signs long-term LNG deal with Spain’s Naturgy

[Digitally Generated Image of LNG Tanker Navigating Coastal Waters Representing Maritime Energy Transport]
alvarez/E+ via Getty Images

Venture Global (VG [https://seekingalpha.com/symbol/VG]) +7.6% pre-market Monday after reporting Q3 results [https://seekingalpha.com/news/4519175-venture-global-reports-mixed-q3-results-updates-fy-outlook] including revenues that more than tripled to $3.33 billion from a year ago and saying it signed a new 20-year supply deal [https://seekingalpha.com/pr/20300052-venture-global-announces-long-term-sales-and-purchase-agreement-with-naturgy-of-spain] with Spain's Naturgy (OTCPK:GASNF [https://seekingalpha.com/symbol/GASNF]) (OTCPK:GASNY [https://seekingalpha.com/symbol/GASNY]) for 1 million metric tons/year of liquefied natural gas.

The agreement represents Spain's first long-term contract for LNG from the U.S. since Venture Global's (VG [https://seekingalpha.com/symbol/VG]) first contract in 2018; the company said it has supplied Spain with 35 cargoes YTD from its Calcasieu Pass and Plaquemines facilities in Louisiana.

The new contract, added to last week's agreement [https://seekingalpha.com/news/4518460-venture-global-signs-greeces-first-long-term-lng-supply-deal-with-us] with Greece's Atlantic-SEE LNG and previous deals with Petronas, SEFE Energy and Eni, raises Venture Global's (VG [https://seekingalpha.com/symbol/VG]) total long-term sales commitments to 5.25 million metric tons/year in H2 2025.

The company said it exported a record 100 cargoes during the Q3, totaling 372 trillion Btu, up 237% from the year-earlier quarter.

Venture Global (VG [https://seekingalpha.com/symbol/VG]) said 34 of 36 liquefaction trains at its Plaquemines project are now producing LNG, while its CP2 project received finalexport authorization from the U.S. Department of Energy.

However, the company lowered guidance for full-year adjusted earnings to $6.35 billion-$6.5 billion from $6.4 billion-$6.8 billion previously, citing changes in natural gas prices.

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