Venture Global has officially begun commercial operations at the first phase of its Plaquemines LNG export facility in Louisiana, marking a significant milestone for one of the largest U.S. liquefied natural gas projects.
The company declared commercial operations on October 31, just over 53 months after reaching a final investment decision (FID) in May 2022. Venture Global said the timeline places Plaquemines among the fastest-developed greenfield LNG export projects globally.
Shell received the first LNG shipment under a long-term sales and purchase agreement, with the cargo departing the facility on November 1.
The milestone represents a major commercial transition for Plaquemines, which began producing and exporting LNG in December 2024. During the subsequent commissioning period, Venture Global sold cargoes into the spot market rather than supplying customers under its long-term contracts.
Phase 1 has a nameplate production capacity of approximately 13.3 million tonnes per annum (mtpa). Its development was supported by a $13.2 billion financing package secured in May 2022.
Long-term customers for the first phase include Shell, Poland’s Orlen, China’s Sinopec and CNOOC Gas & Power, and France’s EDF.
The commencement of contracted deliveries comes as global LNG markets face elevated prices and supply disruptions, particularly in Europe and Asia. Buyers with long-term U.S. supply agreements stand to benefit from contract pricing that can be substantially lower than prevailing spot market benchmarks.
The commercial milestone is also significant given Venture Global’s history of disputes with customers over the timing of contracted LNG deliveries at its Calcasieu Pass facility, which began exporting in 2022.
Several major buyers pursued arbitration over delays in the declaration of commercial operations at Calcasieu Pass while the company continued selling LNG into higher-priced spot markets. In October 2026, an arbitration tribunal ruled that Venture Global had breached its supply agreement with Portugal’s Galp, although the company previously prevailed in disputes involving Shell and Repsol.
At Plaquemines, Venture Global has maintained its schedule for Phase 1 commercial operations in the fourth quarter of 2026, while Phase 2 is expected to begin supplying long-term customers in mid-2027.
The two phases have a combined nameplate capacity of 20 mtpa, with Venture Global targeting higher annual production through its modular liquefaction technology.
Plaquemines is Venture Global’s second LNG export facility, following Calcasieu Pass. The company is also advancing its CP2 LNG development in Louisiana as part of a broader expansion strategy encompassing more than 100 mtpa of capacity across operating, construction-stage, and proposed projects.
The start of long-term deliveries at Plaquemines strengthens Venture Global’s position among leading U.S. LNG exporters while providing additional contracted American natural gas supplies to international markets.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com
Oilprice Intelligence brings you the signals before they become front-page news. This is the same expert analysis read by veteran traders and political advisors. Get it free, twice a week, and you’ll always know why the market is moving before everyone else.
You get the geopolitical intelligence, the hidden inventory data, and the market whispers that move billions – and we’ll send you $389 in premium energy intelligence, on us, just for subscribing. Join 400,000+ readers today. Get access immediately by clicking here.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
