(Oil Price) – U.S. LNG developer and producer Venture Global is set to produce the first liquefied natural gas from its newest project, Plaquemines LNG, as soon as this week, but the commissioning phase will last up to two years during which Venture Global will keep all revenues.
The first production at Plaquemines LNG, possibly this week, would be the first new LNG output from a U.S. facility in two years, according to data from LSEG cited by Reuters.
While the plant will soon begin producing LNG, 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.
By Tsvetana Paraskova for Oilprice.com
