Venture Global begins commercial operations of Plaquemines Phase 1

The US’s second largest LNG producer Venture Global (NYSE: VG) has started commercial operations for Phase 1 of Plaquemines LNG, the Arlington, Virginia-headquartered firm announced on November 1.

The commencement of commercial operations at its export terminal about 35 km south of New Orleans, Louisiana means the company will not begin deliveries of LNG cargoes under its long-term supply agreements.

The start-up of commercial operations comes approximately 53 months after the developer took a positive final investment decision (FID). Venture Global said the timeframe places the development among the quickest newly constructed LNG export facilities to reach operational status.

The world’s largest LNG trader, Shell (NYSE: SHEL), received the delivery of the inaugural cargo of super-chilled fuel under its long-term sales and purchase agreement (SPA). The cargo departed aboard the Malaga Knutsen LNG carrier.

Other buyers with long-term sales and purchase agreements under Phase 1 include Poland's Orlen (WSE: PKN), China's Sinopec and CNOOC Gas & Power, as well as France's EDF.

Venture Global trails only Cheniere Energy among US LNG exporters in terms of production capacity. The upstart LNG developer has more than 100 million tonnes per year (tpy) of LNG capacity across its operational facilities, projects under construction and developments at earlier stages.

The company has experienced a meteoric rise since its founding in 2013. It began producing LNG from its flagship facility, Calcasieu Pass, in 2022.

Meanwhile, Venture Global’s Plaquemines Phase 2 is on schedule to begin deliveries of contracted LNG cargoes by the end of the second quarter of 2027. The expansion will add an additional 10mn tpy of production capacity to the facility giving it a total capacity of 27.2mn tpy.

Venture Global plans to expand Plaquemines LNG to a third phase, which would boost production capacity to 45mn tpy and require an investment of $18bn.