Venture Global VG.N said on Tuesday it has signed new LNG supply agreements with TotalEnergies and trading house Vitol covering combined sales of just over 1 MMtpy for the next five years.

Venture Global is charging customers more than double the long-term LNG price for its five-year deals with the shorter contracts, reducing the company's risk profile, CEO Mike Sabel told an earnings call on Tuesday.

"It allows us to blend out...the risk with much higher pricing than 20-year pricing, double our long term contracts," said Sabel.

The deals bring total new liquefied natural gas sales agreements secured by the U.S. exporter since the outbreak of the Iran war to just over 3 MMtpy, reflecting increased global demand for U.S. shipments as Middle East cargoes remain blocked by the closure of the Strait of Hormuz.

Under the new contracts, Venture Global will sell 0.85 MMtpy of LNG to TotalEnergies and increase its previously contracted volumes with Vitol by 0.2 MMtpy to 1.7 MMtpy, with deliveries starting this year, the company said in a statement. Vitol's initial deal for 1.5 MMtpy was signed in late March (LEARN MORE).

Venture Global had also previously inked a 500,000-metric tpy deal with Trafigura on March 2 (LEARN MORE).

"These agreements reflect the continued confidence and trust in Venture Global’s ability to deliver reliable, low-cost U.S. LNG to global markets quickly and at scale as demand for energy security continues to grow," Sabel said.

The agreement with TotalEnergies marks the first time Venture Global has sold LNG to the French major under a long-term contract, although Total has previously purchased cargoes from the company on the spot market.

"By offering customers short-, medium- and long-term supply options, we are providing the flexibility and certainty they need to deliver LNG where it is needed most," Sabel said.

Venture Global has more LNG available for near-term sale than any other U.S. exporter, as its 27.2-MMtpy Plaquemines LNG plant in Louisiana, the country’s second-largest export facility, ramps up production during commissioning.