Venture Global gets OK to flow feedgas to final LNG units at Calcasieu Pass In US

Venture Global LNG received federal approval July 22 to introduce feedgas to the final liquefaction units of its Calcasieu Pass liquefied natural gas export terminal in Louisiana, a preparatory step to commercial service as the exporter ramps up production to serve intense global LNG demand.

The Federal Energy Regulatory Commission signed off on Venture Global's request to introduce hazardous fluids, including feedgas and refrigerant, to the ninth liquefaction block at Calcasieu Pass, which is designed to have a capacity of 10 million mt/year at full utilization (CP15-550).

The development signaled that all the liquefaction units at Calcasieu Pass will likely soon be producing LNG. Each of the liquefaction blocks at Calcasieu Pass contains two liquefaction trains, for a total of 18 trains at the facility that began shipping LNG cargoes to world buyers in early March. Four of the nine blocks are already in commercial service, while a July 6 request by Venture Global to enter the fifth and sixth blocks into service is pending.

Feedgas deliveries to the Calcasieu Pass facility from the connected TransCameron Pipeline have averaged about 1.3 Bcf/d in July, implying that the facility has been running close to full tilt, according to S&P Global Commodity Insights pipeline flow data. Total flows to US LNG facilities have averaged about 11 Bcf/d during the month.

Venture Global used modular trains at Calcasieu Pass to cut costs and begin production months earlier than originally expected. The liquefaction trains were built in Italy, shipped to the site and installed. The company announced a formal decision to commercially sanction the project in 2019.

Venture Global has taken a similar approach with its other LNG projects. The developer, which has been one of the major beneficiaries of a slew of commercial activity tied to US LNG exports, made a final investment decision in May to build its 20 million mt/y Plaquemines LNG terminal in Louisiana.

Besides Calcasieu Pass and Plaquemines, Venture Global has applications pending at FERC for two additional Louisiana export terminals: the up to 28 million mt/y CP2 LNG project and the up to 24 million mt/y Delta LNG project.