CERAWEEK: Venture Global LNG begins construction of second US liquefaction terminal

Venture Global LNG has started construction of its second Louisiana export facility and has given Baker Hughes a full notice to proceed with assembling the first liquefaction trains, CEO Michael Sabel said March 9.

The developer, which has secured offtake commitments covering 13 million mt/year of the up to 20 million mt/year capacity Plaquemines LNG, still needs to obtain financing for the project before declaring a formal final investment decision, Sabel told a small group of reporters at the CERAWeek by S&P Global energy conference in Houston.

The commercial progress, and the speed and operational success with which it built its Calcasieu Pass facility, gave the developer confidence in beginning construction now, as it seeks to capitalize on the momentum it has in the market.

"The capital is there if you have projects people want to build," Sabel said.

In a statement issued earlier in the day, Baker Hughes said it will provide a modular LNG train system for the first phase of Plaquemines LNG. Calcasieu Pass was built with modular trains that were constructed in Italy, shipped to the site and plugged in. The process allowed Calcasieu Pass to cut costs and begin production months earlier than originally expected. For Plaquemines LNG, Baker Hughes said it would manufacture, test and transport the pre-assembled and fully integrated modular units from its facility in Italy.

Plaquemines LNG, which is being built south of New Orleans, already has the federal permits required to advance the full project to construction. Site work at the Plaquemines location has been underway for months.

The advancement of Plaquemines LNG came just days after the developer and Shell announced a 20-year agreement for the energy major to lift 2 million mt/year of LNG from the terminal. The deal doubled Shell's overall offtake commitment to Venture Global facilities.

Calcasieu Pass exported its first commissioning cargo March 1 aboard the JERA-controlled Yiannis tanker, introducing new supply to the global market during a massive run-up in European gas prices spurred by supply uncertainty amid Russia's invasion of Ukraine. The tanker was in the North Atlantic March 9, with an apparent track toward Europe.

Since that departure, Calcasieu Pass has shipped its second commissioning cargo, and a third tanker was at the facility March 9 for loading, Sabel said.

"We are expanding rapidly," the CEO said.