Venture Global Cashes in on Exports from Plaquemines LNG Plant, SEC Filing Shows

During the same period, it exported 38 LNG cargoes from its Calcasieu Pass facility at an average liquefaction fee of $2.66 per mmBtu.

The lower second-quarter liquefaction fees at Calcasieu Pass come as Venture Global started to sell LNG under long-term contracts there, rather than on the spot market. The Plaquemines facility which is being commissioned while parts remain under construction, has been able to sell on the spot market for higher prices during this period.

In just three years Venture Global has become the second-largest U.S. LNG producer, playing a key role in keeping the country as the world’s top LNG exporter.

The company earned significant profit by quickly building its plants combined with a long commissioning period, allowing it to sell LNG on the spot market at higher prices than it can get from long-term customers.

In April the company began commercial operations at its first plant, Calcasieu Pass, three years after it started selling the superchilled gas on the spot market.

This led to contract arbitration cases brought by some of the world’s top oil and gas producers, including BP, Shell, Edison, Orlen and Repsol, which accused Venture Global of profiting from the sale of LNG on the spot market while not providing them with their contracted cargoes from Calcasieu Pass.

Venture Global denied the claim, saying it delayed moving to commercial operations because of a faulty electric system that did not allow the plant to operate optimally.

(Reporting by Curtis Williams in Houston; Editing by Leslie Adler and Stephen Coates)