Sources say that Venture Global has begun producing LNG at the Plaquemines Phase 2 plant.
According to LSEG ship tracking and federal filings, two people who are familiar with Venture Global's operations and have been following its operations for some time as well as two people familiarized with its operations, Venture Global began producing liquefied gas at Phase 2 of the Plaquemines Export Facility in Louisiana.
Two people with knowledge of the project said that the second largest LNG producer in the United States has been exporting LNG from its Louisiana facility for the past six months. It has now started producing supercooled gas from phase 2, which will allow it to sell LNG at higher spot prices over the next two-year period.
Plaquemines is divided into two phases, each with its own customers and delivery timelines. Phase 2 customers are ExxonMobil, Chevron, EnBW, New Fortress Energy, China Gas, Petronas, and Excelerate Energy. Venture Global previously stated that they would not receive LNG until after the company has completed its commissioning, which is expected to be in mid-2027.
Venture Global can export gas from Phase 2 for up to two years with higher liquefaction charges before being required to supply LNG to its long-term clients at lower rates.
According to preliminary data provided by financial firm LSEG, Plaquemines pumped a record 2.9 Billion cubic feet of natural gas on Sunday.
Venture Global has not responded to our request for comment.
According to a Federal Energy Regulatory Commission filing, the company requested permission from federal regulators on Friday to introduce natural gas in Block 14.
Venture Global's site states that Block 14 is part of Phase 2 of the export facility for Plaquemines, which has a capacity of 27.2 million tons per year. Phase 1 consisted of 12 blocks.
Plaquemines is designed with 18 blocks. Phase 2 will have six more blocks than Phase 1. Each block is equipped with two liquefaction train.
Venture Global's strategy is to extend commissioning periods, by completing the construction of their plants years before it expects LNG to be available to contracted customers at lower prices. This will allow it to earn more revenue by selling cargoes in the spot market.
It revealed last week that it will earn $7.09 per million British Thermal Units (mmBtu), in liquefaction charges, from the spot market sales for LNG at Plaquemines Phase 1 in 2025. This is almost double what it made selling LNG from its Calcasieu Pass facility to its long-term clients, where the average fee was $2.66 per million British thermal units (mmBtu).
Venture Global stock is trading at just over $18 this morning, up 150% since the low of $7 in April.
(source: Reuters)
