Oil & Gas

A U.S. liquefied natural gas (LNG) company, Venture Global LNG, has entered into a regasification agreement with Greece's Gastrade SA to address the shortage of Russian gas supplies caused by the Ukrainian war in February 2022.

The agreement will see the gasification of approximately one million metric tons of U.S. LNG annually in Greece over the next five years. Shipments will begin in 2025, originating from Venture Global’s export facilities in Louisiana.

Europe’s liquefied gas regasification capacity is projected to increase significantly, reaching 10.983 billion cubic feet in 2024, largely due to new projects across the continent, including Greece.

The agreement between the U.S. and Greek companies will enable 12 shipments per year, with a focus on increasing gasification capacity at the Greek terminal in the Thrace Sea.

This terminal is expected to deliver regasified gas to Central, Eastern, and Southern Europe as the project progresses.

Venture Global is set to secure 25% of the Greek terminal’s regasification capacity, handling about 12 shipments annually. The company aims to become the second-largest U.S. LNG exporter after Cheniere Energy, upon completion of its Blacksmith LNG terminal. According to CEO Mike Sabel, the agreement will enhance the integration of Venture Global’s projects and expand its LNG infrastructure, which includes production, shipping, and regasification facilities.

The regasification projects are part of a broader effort to enhance Europe’s energy security, supported by financing from the European Union, the United States, and the World Bank's International Finance Corporation (IFC).

Greece's new LNG terminal in Alexandroupoli and the Vertical Corridor gas pipeline network are key initiatives to reduce reliance on Russian gas and improve energy supply diversification in Central and Eastern Europe.

U.S. LNG exports to Europe are expected to double by the end of the decade, with 50% of U.S. exports already directed to Europe in 2023.