Under the SPA, Hanwha Aerospace will purchase 1.5 million tonnes per annum of LNG from Venture Global for twenty years starting in 2030, according to a Venture Global statement.
Venture Global said this agreement brings its long-term contracted portfolio to over 46 mtpa.
The company currently exports LNG from its Calcasieu Pass and Plaquemines LNG export terminals.
Venture Global is also building the CP2 LNG facility next to the Calcasieu Pass liquefaction plant in Louisiana.
Hanwha Aerospace enters LNG distribution business
Hanwha Aerospace is a core affiliate of the Hanwha Group, operating as a global company primarily focused on aerospace and defense, with expanding operations into energy and industrial infrastructure
Hanwha Aerospace said in a separate statement that this deal marks its first entry into the global LNG distribution business.
The company said it plans to deliver these Venture Global LNG supplies to end users in Europe, Asia, and elsewhere.
According to Hanwha Aerospace, the annual volume of 1.5 mtpa represents approximately 4.4 percent of South Korea’s annual LNG consumption.
Hanwha Aerospace noted that the signing of this contract is part of building a ‘global LNG value chain’ that consolidates the capabilities of Hanwha Group affiliates, including LNG carrier shipbuilding by Hanwha Ocean.
Hanwha and its units already have a stake in US LNG firm NextDecade, which is building the Rio Grande LNG export terminal in Texas.
The group has a 22.7 percent stake (HIP 9.1 percent, Aerospace 6.8 percent, Ocean 6.8 percent) in NextDecade and is the largest shareholder.
In October last year, NextDecade took final investment decisions on the fourth and fifth train, bringing the total expected LNG production capacity under construction at Rio Grande LNG to approximately 30 mtpa.
Hanwha Group recently also signed a memorandum of understanding with Fermeuse Energy to jointly develop the latter’s planned LNG export project in the Canadian province of Newfoundland and Labrador.
