Venture Global CEO: Global LNG price volatility is'very short term' according to Venture Global

Mike Sabel, Chief Executive Officer of Venture Global, said that the volatility in liquefied natural gas prices caused by the Middle East crisis was "very short-term".

QatarEnergy LNG plants are now shut down, affecting 20% of the global LNG supply. This is due to the U.S./Israeli war against Iran which has affected energy supplies in?the Middle East. Qatari Energy Minister Saad Al-Kaabi stated last week that it could take several months for normal deliveries to resume.

Sabel stated that "there is tremendous volatility in the markets." Sabel said, "However, it is only a short-term issue, and we are extremely optimistic about the long-term health of the market. We expect long-term, very stable liquefaction prices."

The average LNG delivery price to Northeast Asia in April was estimated at just $19.50 for a million British thermal unit (mmBtu). This is down from the $22.50/mmBtu of the previous week. That was the highest level since mid-January, 2023.

Industry sources estimated the price of May delivery at $18.90/mmBtu.

Venture Global, the U.S. liquefied -natural gas developer and second largest U.S.?LNG?exporter announced on?Friday that it would proceed with phase two of its CP2 - LNG project in 'Louisiana.

Sabel stated that "we're going add another 10 million tonne (of LNG) on top of the 4 million tonne phase one."

"We anticipate that the first and second phases will produce initial?energy in the next year. This will have a significant effect on the fuel prices very quickly." (Reporting and editing by Tom Hogue; reporting by Yuka Obayashi and Katya Glubkova)

(source: Reuters)