(Bloomberg) — Venture Global LNG Inc. plans to begin production at its second liquefied natural gas export facility in Louisiana in mid-2024, strengthening the U.S. position as the world’s largest supplier of super-chilled fuel.
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The Arlington, Virginia-based company has requested permission to receive a cargo of LNG to cool its equipment as part of its start-up process at the Plaquemines LNG facility, according to an April 22 regulatory filing. This is a key step before LNG exports can begin.
The shale revolution has unleashed vast reserves of natural gas in the United States, pushing the country to overtake Qatar and Australia as the top LNG exporter last year. U.S. shipments are expected to double by the end of the decade as demand in Asia grows rapidly and Europe moves to replace the Russian pipeline.
Plaquemines, currently under construction, received gas last week for its Gator Express pipeline in Louisiana. The total planned capacity of the facility is 20 million tonnes per year, with the first phase expected to produce 10 million tonnes.
In an import license application to the Department of Energy, Venture Global said the facility will need to import LNG from foreign sources to cool the plant for cryogenic operations and “will be able to accommodate up to three LNG carriers “. The producer specified that all of its Plaquemines imports would take place this year.
A Venture Global spokesperson declined to comment Saturday, referring to the filing.
Venture Global would be the eighth U.S. LNG export facility. Venture Global’s first facility – Calcasieu Pass – began producing LNG in 2022, but is not expected to enter commercial operation until late 2024. This has delayed the start of supply to its anchor Calcasieu Pass customers, including Shell Plc., BP Plc. and Repsol SA, which filed an arbitration request challenging the fact that their contracts should have started earlier.
–With help from Stephen Stapczynski.
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