Venture Global LNG reached a final investment decision on the 20 million metric tons per annum Plaquemines facility 30 months ago. (Source: Shutterstock.com)
Venture Global’s Plaquemines LNG has started production, the company said Dec. 14.
Industry watchers have been watching for the news over the past two months, as permits from the Federal Energy Regulatory Commission were granted and an LNG tanker, the Venture Bayou, moored next to the plant in mid-November in Port Sulphur, La.
Plaquemines was on track to pull in about 0.16 Bcf/d of pipeline gas on Dec. 13, Reuters reported. Analysts said that once feedgas to the plant hits around 0.15 Bcf/d, the plant is pulling in enough gas to run at least one block of two liquefaction trains.
Plaquemines is a 20 million metric tons per annum facility, and the first new U.S. plant in two years to reach production. The next LNG production expansion is expected at Cheniere Energy’s Corpus Christi LNG facility.
Plaquemines started production 30 months after Venture Global reached the final investment decision on the project.
Along with the production announcement, Venture Global said the company is preparing to continue expanding its LNG production facilities.
"Between current and planned facilities, Venture Global is prepared to invest $50 billion in energy projects based in the United States which will create jobs, support local economies, strengthen the balance of trade and unleash much needed US LNG supply to our allies," said Make Sabel, Venture Global CEO and co-founder.
The start of production Friday's begins a commissioning period in which Venture Global retains all revenue from LNG shipments. The company’s other facility, Calcasieu Pass LNG, is still undergoing its commissioning process even though the plant has been producing LNG since 2022. Some of that site’s original investors are unhappy about the length of commissioning and are headed toward arbitration worth potentially $5.4 billion.
The start of production at Plaquemines solidifies the U.S.’ leading role in LNG exports against competitors such as Qatar and Australia. The U.S. LNG export capacity is expected to more than double by 2028, from about 12 Bcf/d to 24.4 Bcf/d.
Recommended Reading
BP Profit Falls On Weak Oil Prices, May Slow Share Buybacks
2024-10-30 - Despite a drop in profit due to weak oil prices, BP reported strong results from its U.S. shale segment and new momentum in the Gulf of Mexico.
Utica Oil E&P Infinity Natural Resources’ IPO Gains 7 More Bankers
2024-11-27 - Infinity Natural Resources’ IPO is expected to provide a first-look at the public market’s valuation of the Utica oil play.
Oxy’s Hollub Drills Down on CrownRock Deal, More M&A, Net-zero Oil
2024-11-01 - Vicki Hollub is leading Occidental Petroleum through the M&A wave while pioneering oil and gas in EOR and DAC towards the goal of net-zero oil.
EnCap Closes $6.4B for E&P Fund, Including Co-investments
2024-10-21 - EnCap’s Fund XII raised $5.25 billion for work in U.S. oil and gas basins. Coupled with its energy transition and midstream funds, the private equity firm has collectively raised $9 billion this year.
Matador Resources Credit Facility Upped by 30% to $3.25B
2024-12-04 - Matador Resources’ 19 lenders unanimously approved a 30% increase to the E&Ps borrowing base to $3.25 billion.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.