By Curtis Williams
HOUSTON (Reuters) – Federal regulators on Tuesday gave Venture Global LNG permission to introduce natural gas into the seventh block of its Plaquemines plant in Louisiana as the company continues to ramp up production of the superchilled gas.
The Arlington, Virginia-based company is the second-largest U.S. liquefied natural gas (LNG) exporter and has been quickly increasing production from its second LNG plant, Plaquemines.
On Tuesday the facility was on track to pull 1.1 billion cubic feet (bcf) of gas, down from a high of 1.3 bcf last Wednesday, and just short of its Calcasieu Pass plant’s 1.5 bcfd nameplate capacity, according to data from financial firm LSEG.
Venture Global last Thursday became the U.S. most valuable pure LNG company when it raised $1.75 billion in the first big initial public offering of President Donald Trump’s second term.
That pushed the company’s valuation above rival Cheniere Energy.
At peak production, the Plaquemines facility could produce over 27 million metric tonnes per annum (MTPA), according to the company. The entire facility will not be fully commissioned until 2027, it said.
Venture Global has said its strategy is to have extended commissioning periods so that it can maximize its profits through sales on the spot market at higher prices than it can get under long term contracts. It will then produce well above its name plate capacity so that it can sell those additional non-contracted cargoes.
Venture Global is involved in contract arbitration cases brought by some of the world’s top oil and gas producers, including BP, Shell, Edison, Orlen and Repsol for cargoes exported from the company’s first project, the Calcasieu Pass plant, which they say should have been sold to them under long-term contracts.
Shell, Orlen and Edison confirmed that the arbitration is ongoing and could not comment. Venture Global was not immediately available for comment.
Venture Global’s shares were trading at $19.26 in afternoon trading on Tuesday. It’s shares were down 23% from its IPO price.
(Reporting by Curtis Williams in Houston; Editing by Nick Zieminski)
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