The Federal Energy Regulatory Commission granted Venture Global permission to start accepting and processing gas into liquefied form for export at its massive Plaquemines LNG export terminal, according to an April 23 filing.
However, the delivery date for LNG to long-term customers may still be several years away, according to comments made by Venture Global CEO Mike Sabel in December.
Superficially, FERC granted approval to “introduce hazardous fluids [natural gas] to the gas gate,” according to an April 23 letter sent to Venture Global.
The Plaquemines plant is about 20 miles down the Mississippi River from New Orleans.
According to a report from Reuters, Sabel said that the start up process at the Plaquemines plant will follow a similar process as at the company’s Calcasieu Pass LNG facility.
Venture Global has been in a battle with several long-term customers over the final commissioning of its Calcasieu Pass 1 plant. The facility has been producing LNG for more than 22 months. However, Venture Global has told its foundational customers, such as BP and Shell, that it cannot provide them with term-contract (price-guaranteed) cargoes until the FERC rules that the project is complete.
Once up and running, the Plaquemines plant will be one of the largest in the U.S., consuming more than 2.6 Bcf/d of natural gas and producing up to 20 MMmt of LNG a year.
Jen Snyder, an analyst for RBN Energy, wrote in a February examination of the Gulf gas flows that the project would have a major regional impact.
"For Southeast Louisiana, home to a massive industrial corridor along the Mississippi River as well as the U.S. natural gas benchmark Henry Hub, the introduction of such a huge source of demand will change how gas flows into and out of the region — with knock-on effects across the Gulf Coast," Snyder wrote.
Recommended Reading
U.S. Shale-catters to IPO Australian Shale Explorer on NYSE
2024-05-04 - Tamboran Resources Corp. is majority owned by Permian wildcatter Bryan Sheffield and chaired by Haynesville and Eagle Ford discovery co-leader Dick Stoneburner.
1Q24 Dividends Declared in the Week of April 29
2024-05-03 - With earnings season in full swing, upstream and midstream companies are declaring quarterly dividends. Here is a selection of dividends announced in the past week.
Analyst Questions Kimmeridge’s Character, Ben Dell Responds
2024-05-02 - The analyst said that “they don’t seem to be particularly good actors.” Ben Dell, Kimmeridge Energy Partners managing partner, told Hart Energy that “our reputation is unparalleled.”
Tellurian Reports Driftwood LNG Progress Amid Low NatGas Production
2024-05-02 - Tellurian’s Driftwood LNG received an extension through 2029 with authorization from the Federal Energy Regulatory Commission and the U.S. Army Corps of Engineers.
Zeta Energy Appoints Michael Everett as COO
2024-05-02 - Prior to joining Zeta Energy, a lithium-sulfur battery developer, Michael Everett previously served as president and COO at Advanced Battery Concepts.