Venture Global promises on-time LNG delivery amid Middle East conflict

Venture Global LNG, a U.S. developer of liquefied natural gas (LNG), has informed customers that its Plaquemines plant in Louisiana is under construction. The letter was seen by the. Venture Global LNG, a Virginia-based firm, wrote to customers of Plaquemines Phase 1 on Friday and stated that it will begin long-term deliveries on October 31, despite a rise in global gas prices due to the U.S. and Israeli war against Iran.

The letter stated that "as of today, Phase 1 is on schedule" as global energy markets react critically to developments in Iran and the Middle East. BP, Shell and Repsol - as well as Edison, Galp and Repsol - took Venture Global before arbitration over one of the largest disputes in the LNG industry's history. Venture Global was accused by the companies of not delivering contracted?cargoes to its Calcasieu Pass plant during the commissioning process in order to benefit from higher spot prices during the energy crisis of 2021-2023. BP, which won its case against Venture Global, is now seeking $3.7 billion. Venture Global, on the other hand, blamed technical problems for the delays. Orlen's lawsuit is still pending.

A Venture Global spokesperson clarified that the fluctuating market conditions had no effect on their previously announced schedule. As we confirmed on our earnings call, nearly 70% cargoes for 2026 at Plaquemines have already been contracted. We reaffirm Phase One's target to declare COD by Q4 2026.

The benchmark gas price has risen, with Dutch Title Transfer Facility Futures trading near a two-year-high of $16 and the Japan-Korea Marker at around a $21 high per million British Thermal Units.

Venture Global is America's second largest LNG exporter. According to LSEG, Plaquemines was its second export terminal. It shipped 2,000,000 metric tons LNG from Plaquemines last?month. Even though the?plant is still in development, it has already started shipping early commission cargoes.

The company informed customers that it would begin developing its annual deliver program for the first contractual year in early may, followed by the other contract year in late July. (Reporting from Stephanie Kelly in London, Curtis Williams and Matthew Lewis in Houston. Editing by Nathan Crooks & Matthew Lewis).

(source: Reuters)