US Venture Global LNG to initiate LNG operations by mid-24

Venture Global LNG Inc. is poised to initiate operations at its second liquefied natural gas (LNG) export site in Louisiana by mid-2024, solidifying the United States’ position as the leading global provider of this super-chilled fuel, Bloomberg reported.

Based in Arlington, Virginia, the company has formally requested approval to receive an LNG shipment to facilitate the cooling process of its equipment at the Plaquemines LNG facility. This regulatory step is crucial before commencing LNG exports.

The surge in natural gas reserves, thanks to the shale revolution, has propelled the United States ahead of Qatar and Australia to become the premier LNG exporter. Projections indicate that US deliveries will double by the decade’s end, fueled by escalating demand across Asia and Europe’s efforts to diversify away from Russian pipeline gas.

Plaquemines, currently in the construction phase, recently received a portion of its gas supply through the Louisiana pipeline Gator Express. With a planned annual capacity of 20 million tons, the initial phase aims to produce 10 million tons.

In its application for an import license to the Department of Energy, Venture Global outlined the necessity of importing foreign-sourced LNG to cool the plant for cryogenic operations. The company anticipates receiving up to three LNG carriers for this purpose, with all imports slated for this year.

A spokesperson for Venture Global declined to provide comment, referring to the regulatory filing.

Upon commencement, Venture Global’s Plaquemines facility will become the eighth US LNG export site. While the company’s first facility, Calcasieu Pass, initiated LNG production in 2022, it is not expected to commence commercial operations until the end of 2024. This delay has impacted supply to anchor customers, including Shell Plc., BP Plc., and Repsol SA, leading to arbitration disputes regarding the timing of their contracts.