Venture Global sells early 2025 LNG cargoes from Plaquemines terminal

Venture Global has sold LNG cargoes from its new Plaquemines terminal for the initial months of 2025 through a short-term strip offered earlier in 2024, multiple trade sources told S&P Global Commodity Insights.

The LNG sales, totaling about four to five cargoes per month on a free-on-board (FOB) and delivered ex-ship (DES) basis, affirm expectations that Plaquemines could commence LNG exports from January 2025.

On Nov. 21, Venture Global received permission from the US Federal Energy Regulatory Commission to introduce feedgas to the first liquefaction units at the Plaquemines LNG facility in Louisiana.

Venture Global did not immediately respond to a Commodity Insights request for comment on the matter over email.

The US-based LNG exporter had offered an LNG strip loading from the Plaquemines terminal as early as October in anticipation of the project's early startup.

The LNG cargoes sold from January onward designate the Plaquemines terminal as the load port, with Venture Global retaining the option to nominate Calcasieu Pass as an alternate loading port, trade sources said. This flexibility could be advantageous since Venture Global has postponed the start date of full commercial operations at Calcasieu Pass to April.

"Phase 1 of Plaquemines is quite big. They can potentially sell a lot more in the market with Calcasieu Pass further deferred from the commercial start of operations date," one of the sources said.

Trade sources indicated that some of the January loading LNG cargoes were sold at Dutch TTF January prices minus 60-70 cents, consistent with the prevailing LNG prices at the time of these trades. Although the LNG cargoes were sold on a Henry Hub basis, traders placed bids by calculating the netback from Dutch TTF prices.

Venture Global is also offering LNG cargoes for the remainder of 2025, and some prospective buyers have been bidding on these, taking into account weaker freight due to the prevailing lower LNG shipping rates, according to trade sources.

Platts, part of Commodity Insights, assessed the day rate for tri-fuel diesel electric LNG carriers in the Atlantic Basin down $2,000/d on the week to $9,000/d on Nov. 27, with a ballast rate of 100%. In the Pacific Basin, the rate declined $1,000/d on the week to $11,000/d, with a ballast rate of 100%. These rates are among the lowest on record for LNG shipping.

First LNG exports

Venture Global has said that Calcasieu Pass remains in commissioning due to reliability challenges with power generation facilities, necessitating an extended commissioning period because of the plant's design and rapid development timeline. The longer this commissioning period, the more spot LNG cargoes become available for market offerings.

The Calcasieu Pass LNG export terminal in Louisiana, which employs a design and liquefaction technology similar to that of Plaquemines, began producing LNG about a week after receiving FERC's approval on Jan. 12, 2022, following the introduction of feedgas to the initial liquefaction units.

The first LNG from Calcasieu Pass was exported on March 1, 2022, about 49 days after the approval.

Venture Global could expedite the export of its first LNG cargoes from Plaquemines upon approval, given that it imported a cargo in September to cool down the facility, trade sources said. This would allow Venture Global to reexport the stored LNG along with newly produced LNG at the facility.

These developments come as global LNG supply has been constrained due to concerns about increased European demand related to cold weather, apprehensions regarding supply security amid Russia-Ukraine geopolitical tensions and potential reductions in pipeline gas supply from Russia.

"The whole market should indeed be all over it," a Singapore-based trader said, indicating a strong response to the spot volumes for Plaquemines LNG cargoes.

Platts assessed the Northwest Europe marker at $14.334/MMBtu for January on Nov. 27 at the London close. JKM, the benchmark price for LNG cargoes delivered to Northeast Asia, was assessed at $15.202/MMBtu on Nov. 27 at the Singapore close.