Sources say that Venture Global has been in talks with Ukraine about providing it with more LNG.
Three people have confirmed that Venture Global is in talks with Ukraine about selling it more liquefied gas from its Plaquemines plant, located in Louisiana. This comes as winter approaches and Russia continues to attack Ukraine's infrastructure. According to two people, the talks are being held with Ukraine's DTEK - a major player within Ukraine's energy industry. Ukraine's energy infrastructure is deteriorating due to Russian attacks and it has been forced to increase gas imports to compensate for its sagging production. Venture Global CEO Michael Sabel met with President Volodymyr Zelenskiy in Washington, D.C., Thursday. The Ukrainian leader shared images from the meeting with X, saying that the country needs more power. Venture Global declined comment on the discussions and DTEK didn't immediately respond to an inquiry for comment. DTEK has already signed an agreement in 2024 for an undisclosed quantity of LNG to be delivered from the facility. This is in addition to 2 million metric tonnes per year from CP2, Venture Global’s third export hub, which is currently being constructed. Venture Global has the largest amount of spare capacity among U.S. LNG operators, with its Plaquemines LNG Plant still in the construction phase. This allows for spot sales.
This practice has gained more attention since an arbitration tribunal last week found that Venture Global violated an agreement with BP by failing to declare timely commercial operation at its separate Calcasieu Pass facility in Louisiana, and prioritizing spot sales instead.
Venture Global said the timetable for the full commercial operation at Plaquemines, which will result in activation of long-term contracts with cheaper prices, is still on track. According to preliminary data provided by financial firm LSEG, Venture Global exported 1.6 millions tonnes of LNG last month from Plaquemines. This represents 17% of the total U.S. exports of LNG in September.
(source: Reuters)
