Calcasieu Pass approved to export US facility's first LNG commissioning cargo

Venture Global LNG was given the go-ahead by US regulators Feb. 11 to export its first cargo, as a JERA-controlled tanker remained moored at the facility for loading.

The approval from the Federal Energy Regulatory Commission appeared to be the final clearance needed for the operator to begin loading the LNG tanker Yiannis, which arrived at the liquefaction facility on Feb. 7. The ship had previously been tentatively expected to depart Feb. 11, though it was unclear if that timeline would be met. LNG production at the site began Jan. 19.

A Venture Global spokeswoman did not respond to a message seeking comment.

Traders have said the cargo would likely stay in the Atlantic Basin, possibly Europe. Japan, responding to US and EU requests, said Feb. 9 that it would divert some surplus LNG cargoes to Europe, where gas inventories are at a nine-month low. US FOB Gulf Coast cargo values rose Feb. 11, with Europe as the best netback.

Venture Global has approval to flow LNG feedgas to four of 18 liquefaction trains for commissioning purposes. As of Feb. 11, it was seeking permission to flow LNG feedgas to two more trains. The facility is designed to have a capacity of 10 million mt/year at full utilization.

It was unclear how many commissioning cargoes Calcasieu Pass planned to export before beginning commercial service under long-term agreements. The long-term offtakers include Shell, Britain's BP, Italy's Edison, Portugal's Galp, Spain's Repsol and Poland's PGNiG. The trading arm of China's Sinopec has a short-term deal for volumes from Calcasieu Pass.

Besides Calcasieu Pass, Venture Global has also proposed three additional LNG terminals in Louisiana, including the already permitted Plaquemines LNG project that would have an LNG production capacity of up to 20 million mt/year. Plaquemines is the most advanced of Venture Global's expansion projects, but the developer has yet to announce a formal final investment decision on any of the new facilities.