Venture Global seeks nod to start commercial service at Calcasieu Pass in US

Venture Global LNG has told US federal energy regulators that it is ready to start commercial operations on the first four liquefaction blocks at its Calcasieu Pass LNG export terminal in Louisiana, advancing the developer's efforts to ramp up production as global demand surges.

Venture Global's May 2 request to the Federal Energy Regulatory Commission sought authorization by May 6 for commercial service (CP15-550).

LNG production at Calcasieu Pass began Jan. 19, making it the seventh major US LNG export facility in operation. Calcasieu Pass has been shipping and commissioning cargoes since March, helping drive total feedgas demand by US export facilities to record levels amid strong global demand for LNG.

Flows to the facility were around 880 MMcf/d on May 2, according to pipeline flow data reported by the developer from the TransCameron Pipeline system.

Calcasieu Pass was designed to have a capacity of 10 million mt/year at full utilization from a total of nine natural gas liquefaction blocks. Each of the blocks will contain two LNG trains, for a total of 18 modular LNG trains. Venture Global has used modular trains to allow it to cut costs and begin production months earlier than originally expected. The liquefaction trains were constructed in Italy, shipped to the site and installed.

Venture Global took a similar approach with its other LNG projects, including its Plaquemines LNG terminal in Louisiana. The developer recently announced the start of construction on the Plaquemines facility as it works to obtain the financing it needs to declare a formal final investment decision.

Venture Global is among the developers of LNG projects in the US that have benefited from a flurry of commercial activity in 2021 and the first several months of 2022. Interest in US projects that offer fixed fees and destination flexibility has intensified as Europe tries to reduce its dependence on Russian pipeline gas following the invasion of Ukraine. Besides Calcasieu Pass and Plaquemines, Venture Global has applications pending at FERC for two additional Louisiana export projects.

"The need for US LNG exports has never been clearer," Venture Global said in comments in a separate proceeding at FERC on May 2.

In that matter, the developer sought approval to increase the authorized maximum capacity of the Plaquemines terminal to 27.2 million mt/year from 24 million mt/year (CP22-92). The company has pushed back against environmental groups that have urged FERC to reject the request, citing "extraordinary current demand for the export of US LNG around the world."

Plaquemines deals to be announced

Venture Global said it is targeting a phased operational startup at Plaquemines, with the first export by the end of 2024 and commercial operations starting mid-2025. The developer highlighted its commercial progress supporting the facility, saying it expects to announce additional sale and purchase agreements with LNG buyers "very soon."

Venture Global also pointed to a lack of new US LNG capacity scheduled to come online after the Golden Pass LNG facility in Texas. The Golden Pass project is under construction and slated to start in 2024.

"Plaquemines LNG is very likely to be the next project that will begin exporting incremental US LNG to the world," Venture Global said.