Floating storage and regasification unit specialist Excelerate Energy has signed up to buy its first LNG volumes.

The US-listed company said it has signed a 20-year LNG sales and purchase agreement (SPA) with US producer Venture Global LNG.

Under the SPA, Excelerate is buying 0.7 million tonnes per annum of LNG on a free-on-board basis from Venture Global’s Plaquemines LNG facility in Louisiana.

Excelerate president and chief executive Steven Kobos said the deal — believed to be a first for the company — “supports our efforts to enhance energy security and accelerate the energy transition by delivering natural gas to our customers worldwide”.

Kobos added: “This agreement is an important milestone for Excelerate as we continue to execute our growth strategy.”

He said: “Building a diversified LNG supply portfolio with strong partners like Venture Global will allow us to offer more flexible and cost-effective products to existing and new customers in downstream markets.”

Kobos’ counterpart at Venture Global Mike Sabel praised Excelerate for the buy. “Their foresight and transformational work to bring much needed energy infrastructure to markets around the globe has enabled countries from Europe, the global south and the developing world to fuel switch from coal to natural gas while lifting millions out of energy poverty.”

Venture Global exported its first cargo in February 2022 after bringing its 12-mtpa Calcasieu Pass LNG project onstream.

The Louisiana-based plant was built using a new modular form of construction to speed its time to market.

The company’s second project is the 20-mtpa Plaquemines LNG, from which it is selling some of the LNG on a free-on-board basis.

Venture Global, which has also ordered LNG carrier newbuildings currently for its own account, is also developing two more projects that will give it a total of 70 mtpa of LNG in the US — the 20-mtpa Delta LNG and a fourth project dubbed CP2 LNG.