Venture Global, the LNG operator, has asked the Federal Energy Regulatory Commission to greenlight its third liquefaction plant, in Louisiana, by June 26.
The company previously said it plans to make the final investment decision on the new facility by mid-2025 but, its chief executive said, it needs the go-ahead from the regulator. FERC had earlier rescinded its approval for the project on the grounds of concern related to its impact on air quality in the area. The concern prompted a second environmental assessment, which the regulator completed last week, concluding there was no danger for air quality, after all.
“We have clearly made the decision to invest our own capital and do everything we can do to move the Project forward... but we need the Commission to act,” Michael Sable said in a letter the company sent to FERC, as quoted by Reuters.
Venture Global yesterday reported a twofold increase in revenues for the first quarter of the year, benefiting from strong LNG demand that drove an increase in exports of the superchilled fuel. Income from operations jumped by 75% on the year, Venture Global said, adding that it expects to export 145-150 cargoes from the Calcasieu project and 222-239 cargoes from the Plaquemines project in 2025, including those already shipped in the first quarter.
Venture Global gained not-too-positive notoriety recently after half a dozen European energy majors accused it of breaking long-term delivery contracts to sell LNG on the spot market at higher prices. This made Venture Global billions of dollars, while causing losses for the long-term clients, which contributed with the funding of the U.S. company’s first LNG plant.
The CP2 plant will add 28 million metric tons to the U.S. total LNG export capacity and will become the biggest LNG plant in the country. Currently, Venture Global is the second-largest LNG producer in the U.S., behind Cheniere Energy. Both have benefited from the surge in demand for LNG from Europe after the axing of Russian pipeline imports.
By Irina Slav for Oilprice.com
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