SEC filing reveals that Venture Global is making money on LNG exports from Plaquemines plant

Venture Global has exported more LNG cargoes out of its Plaquemines facility in Louisiana, and it earned twice as much in fees as its other U.S. location.

According to the SEC filing, the LNG company exported 51 cargoes of LNG from Plaquemines for a liquefaction charge of $7.09 million British thermal units per quarter (mmBtu).

During the same time period, the company exported 38 LNG cargoes at an average of $2.66/mmBtu.

Venture Global began selling LNG on Calcasieu Pass under long-term agreements, instead of the spot market. This resulted in lower liquefaction charges for the second quarter. During this time, the Plaquemines plant which is still under construction and being put into service has been able sell LNG on the spot markets for a higher price.

Venture Global, the US' second largest LNG producer in just three short years, has played a major role in maintaining the United States as the top LNG exporter on the planet.

The company made a significant profit because it built its plants quickly and had a long period of commissioning. This allowed it to sell LNG at inflated prices on the spot markets, as opposed to what it could get from customers who were long-term.

Three years after selling supercooled gas on the spot markets, the company started commercial operations in April at its first plant Calcasieu Pass.

Some of the biggest oil and gas producers in the world, such as BP, Shell and Repsol, brought contract arbitration suits against Venture Global, accusing them of profiting on the sale of LNG at the spot market, while failing to deliver their contracted cargoes out of Calcasieu Pass.

Venture Global denied this claim. It said it had delayed commercial operations due to a defective electric system which did not allow for the plant to run optimally. Reporting by Curtis Williams, Houston; Editing and proofreading by Leslie Adler & Stephen Coates

(source: Reuters)