December 17, 2024 [Oil Prices]- Venture Global has reached first LNG production at its second facility, Plaquemines LNG, in Port Sulphur, Louisiana, the U.S. LNG plant developer says.

The 20-million-mtpa Plaquemines LNG plant achieved the first production milestone 30 months after its Final Investment Decision (FID), Venture Global said.

“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,” Venture Global CEO and co-founder Mike Sabel said in a statement.

While the plant achieved first LNG production, its buyers under long-term contracts – including ExxonMobil, Chevron, EDF, and Petronas – may have to wait until the end of 2026 or 2027 to receive cargoes when the commissioning period expires and the facility achieves the so-called commercial operation date.

Venture Global, with its other plant, Calcasieu Pass, is already embroiled in a legal battle with some international oil and gas majors and big LNG traders, including Shell and BP.

Venture Global acquired some notoriety over the past two years after Big Oil majors accused it of withholding LNG volumes contracted under long-term deals in order to sell them on the spot market for a fatter profit. To do this, Venture Global used a loophole that allowed it to keep its one operating facility in Calcasieu Pass formally categorized as under construction, which relieved it of its supply commitments under long-term contracts.

Venture Global has been seeking to extend the construction period for its Calcasieu Pass LNG plant.

Once the Calcasieu Pass facility is officially recognized as completed and fully operational, Venture Global would need to start servicing its long-term contracts with Shell, BP, and Spain’s Repsol.

The three supermajors, along with two other European energy companies, were foundation buyers for the Calcasieu Pass facility, meaning they provided Venture Global with the money to build the plant in Louisiana in exchange for a commitment from the company to supply them with certain volumes of LNG over a long-term period.

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