Venture Global LNG Begins Commercial Operations at Calcasieu Pass Plant

Venture Global LNG has announced the commencement of commercial operations at its Calcasieu Pass plant in Louisiana, marking the end of a more than three-year commissioning process. The company will now transition to selling LNG to its long-term customers at lower prices, moving away from testing cargoes in the competitive global market.

Founded just five years ago, Venture Global has quickly become the second-largest LNG producer in the United States, contributing to the country’s leading position in LNG exports on the global stage.

The commissioning process at the Calcasieu Pass plant faced delays due to unforeseen circumstances such as the global pandemic, two hurricanes, and issues with the facility’s power island. However, after significant rectification and remediation efforts, the plant is now ready to operate safely and reliably.

Despite the challenges faced during the commissioning process, Venture Global is now set to deliver LNG to its long-term customers, with the Gaslog Wellington tanker being the first vessel to receive LNG from the Calcasieu Pass plant.

While the move to commercial operations is a significant milestone for Venture Global, ongoing arbitration cases filed by long-term customers such as Shell, BP, Orlen, Edison, and Repsol are still in progress. These customers have raised concerns about supply contract fulfillment and delayed plant commissioning, alleging that Venture Global prioritized profiting from higher spot prices.

Looking ahead, Venture Global is also preparing to ramp up production at its newer and larger Plaquemines facility, which is expected to further contribute to the company’s success in the LNG market.

Despite challenges along the way, Venture Global’s transition to commercial operations at the Calcasieu Pass plant signifies a significant achievement for the company and the LNG industry as a whole.

Stay tuned for more updates on Venture Global’s operations and its impact on the LNG market.

Sources: Reuters