Venture Global Begins LNG Production at New Plant in Louisiana

Venture Global LNG Inc. has officially commenced the production of liquefied natural gas (LNG) at its Plaquemines plant located in Louisiana. This marks an important milestone as it becomes the eighth LNG export facility in the United States.

Production Details

The company, headquartered in Arlington, Virginia, announced that it achieved its first production milestone last Friday. According to tracking data, the vessel Venture Bayou was docked at the plant and is set to begin loading shortly after the startup.

Future Plans and Challenges

Starting operations at the Plaquemines plant comes at a time when Venture Global plans to file for an initial public offering (IPO). However, the company is currently facing arbitration claims totaling nearly $6 billion from major customers, including BP Plc and Shell Plc. These disputes arose because the company initially sold LNG to the spot market instead of fulfilling its contractual obligations with customers at its first facility in Calcasieu Pass.

In May 2022, Venture Global secured $13.2 billion in financing for the first phase of the Plaquemines project. Notable long-term customers of the facility include Shell, Poland's Orlen SA, China's Sinopec, CNOOC Ltd., and Electricite de France, the parent company of Edison.

Regulatory Environment

The Plaquemines facility was under construction and permitted before President Joe Biden's administration decided to pause permits for new LNG export projects. Although Venture Global's third project, CP2, is currently stalled due to this permitting pause, President-elect Donald Trump has indicated that he will lift the ban once in office.

LNG, Production, Investment