The Federal Energy Regulatory Commission granted Venture Global permission to start accepting and processing gas into liquefied form for export at its massive Plaquemines LNG export terminal, according to an April 23 filing.
However, the delivery date for LNG to long-term customers may still be several years away, according to comments made by Venture Global CEO Mike Sabel in December.
Superficially, FERC granted approval to “introduce hazardous fluids [natural gas] to the gas gate,” according to an April 23 letter sent to Venture Global.
The Plaquemines plant is about 20 miles down the Mississippi River from New Orleans.
According to a report from Reuters, Sabel said that the start up process at the Plaquemines plant will follow a similar process as at the company’s Calcasieu Pass LNG facility.
Venture Global has been in a battle with several long-term customers over the final commissioning of its Calcasieu Pass 1 plant. The facility has been producing LNG for more than 22 months. However, Venture Global has told its foundational customers, such as BP and Shell, that it cannot provide them with term-contract (price-guaranteed) cargoes until the FERC rules that the project is complete.
Once up and running, the Plaquemines plant will be one of the largest in the U.S., consuming more than 2.6 Bcf/d of natural gas and producing up to 20 MMmt of LNG a year.
Jen Snyder, an analyst for RBN Energy, wrote in a February examination of the Gulf gas flows that the project would have a major regional impact.
"For Southeast Louisiana, home to a massive industrial corridor along the Mississippi River as well as the U.S. natural gas benchmark Henry Hub, the introduction of such a huge source of demand will change how gas flows into and out of the region — with knock-on effects across the Gulf Coast," Snyder wrote.
Recommended Reading
AI Highs: Corva Predictive Drilling Powers Oilfield Efficiency
2024-05-20 - The energy sector is buzzing with talk of artificial intelligence, and Corva is capitalizing on its ability to synthesize complex data to optimize drilling operations with predictive drilling software.
Kimmeridge’s Mark Viviano on Reshaping the Energy Sector, SilverBow-Crescent Deal
2024-05-16 - Kimmeridge Energy Engagement Partners’ Mark Viviano says the company is evaluating the Crescent Energy and SilverBow Acquisition and how Kimmeridge played a key role in transforming the shale sector in this Hart Energy Exclusive interview.
SUPER DUG Shale 4.0 Era about Building Scale- Rystad
2024-05-16 - The Shale 3.0 era or capital discipline era will be followed by the Shale 4.0 era, which will see companies focused on building scale, according to Rystad Energy Senior Shale Analyst Matthew Bernstein.
How Diversified Already Surpassed its 2030 Emissions Goals
2024-04-12 - Through Diversified Energy’s “aggressive” voluntary leak detection and repair program, the company has already hit its 2030 emission goal and is en route to 2040 targets, the company says.