Venture Global's Plaquemines LNG exports first commissioning cargo, carrier headed to Germany

Venture Global's Plaquemines LNG terminal exported the first commissioning cargo from the Louisiana facility on Dec. 26 on a carrier that will deliver the supply to German utility EnBW, the company said.

The Venture Bayou, a carrier owned by the developer, departed the terminal south of New Orleans around 11 am local time, after arriving more than a month earlier, Venture Global said. The captain's destination log showed the tanker was headed to Brunsbuettel in northern Germany, where it was expected to arrive by Jan. 8, 2025, S&P Global Commodities at Sea(opens in a new tab) data showed.

The start of exports from the eighth major LNG export terminal in the US stood to reinforce the country's status as the world's top LNG exporter. The first shipment also comes as global LNG spot prices remain elevated over continued supply uncertainty and as US-based natural gas producers are awaiting a ramp-up at the facility as a source demand growth for the domestic market.

Platts, part of S&P Global Commodity Insights, last assessed the Gulf Coast Marker for US FOB cargoes loading 30-60 days forward at $13.29/MMBtu on Dec. 24, up 4 cents/MMBtu on the day.

Venture Global, which already operates the 10 million mt/year Calcasieu Pass LNG terminal, touted the first shipment from Plaquemines as one of more than 60 it has sent to Germany since 2022, which faced an energy crisis following the loss of Russian pipeline gas amid the war in Ukraine.

"We believe this incremental supply has proven to be a valuable geopolitical asset for the United States, especially during a time of historically tight global LNG markets and project delays," Venture Global said in a statement.

Brunsbuettel is home to one of four storage and regasification units to begin operating in the country following the halt of Russian pipeline flows in 2022.

Venture Global, among the beneficiaries of a flurry of commercial activity tied to US LNG projects as Europe turned increasingly to LNG supply to offset the loss of Russian gas, reached a final investment decision on the first phase of the Plaquemines project in May 2022. The developer commercially sanctioned the remaining facilities in March 2023 for a total nameplate capacity of 20 million mt/year.

"I am extremely proud of our team whose relentless execution has enabled Venture Global to continue to meet milestones at exceptional speed," Venture Global CEO Mike Sabel said in a statement. "In just five years, Venture Global has built, produced and launched exports from two large-scale LNG projects, which has never been done before in the history of the industry."

The operator indicated in a Dec. 20 filing for an initial public offering that it plans to sell LNG from the fully contracted Plaquemines project over an extended commissioning period, similar to what it has done at Calcasieu Pass. The developer said in the filing it is targeting the start of commercial operations at Plaquemines in the third quarter of 2026 for the first phase of the project, followed by commercial deliveries from the plant's remaining facilities in the second quarter of 2027.

At Calcasieu Pass, Venture Global faces arbitration proceedings from foundational customers of Calcasieu Pass over the operator's failure to deliver contracted volumes, despite beginning exports from the facility in March 2022. Venture Global, which has denied its customers claims and said it is honoring long-term contracts, said in the IPO filing that it is targeting the start of commercial operations at Calcasieu Pass in March 2025.

EnBW is a foundational customer of Plaquemines, having committed in 2022 to buy for 1 million mt/year from the facility over a 20-year term under a contract tied to the second phase of the project. Long-term customers for the initial phase include Poland's PGNiG, China Petroleum & Chemical, China National Offshore Oil, Shell, and France's EDF. Additional foundational customers include ExxonMobil, Malaysia's Petroliam Nasional, US-based New Fortress Energy and Chevron.

Venture Global announced the start of LNG production at Plaquemines on Dec. 13. Plaquemines was one of two US LNG capacity additions expected to reach that milestone by the end of 2024. The other, a midscale expansion of Cheniere's Corpus Christi LNG terminal in Texas, is also nearing the start of production after the US Federal Energy Regulatory Commission on Dec. 23 granted the developer permission to introduce feedgas to the first liquefaction train of the project.

A ramp-up in feedgas deliveries to Plaquemines helped push overall US LNG feedgas demand to an all-time high of more than 15.3 Bcf/d on Dec. 25, slightly surpassing the previous record set on Dec. 31, 2023, Commodity Insights data showed. Utilization remained high on Dec. 26, with US LNG terminals set to receive a total of 15 Bcf/d, based on nominations for the morning cycle that could later be revised.

Feedgas demand at Plaquemines is expected to continue rising this winter as commissioning work progresses. Venture Global on Dec. 23 received permission from FERC to flow feedgas to the fourth of 18 liquefaction blocks. Each block contains two liquefaction trains and has a nameplate capacity of about 1.1 million mt/year.

On Dec. 26, FERC authorized Texas Eastern Transmission, one of the pipelines supplying Plaquemines, to place into service the remaining facilities on the Venice Extension Project that will feed the terminal, including two compressor units (CP22-15). The Venice Extension entails 3 miles of replacement pipeline and additional compression at three locations in Louisiana. The overall project is expected to provide up to 1.26 Bcf/d to Venture Global's Gator Express pipeline, which will then carry gas to the export facility.