Venture Global has quietly begun producing LNG from Phase 2 of its Plaquemines export terminal in Louisiana, sources told Reuters, marking a significant step in the company’s ongoing strategy to front-load spot market profits while delaying deliveries to long-term customers.
The move allows the recently public LNG player to sell cargoes at elevated spot market prices—reportedly earning $7.09 per MMBtu in Q2 2025—well above the $2.66 per MMBtu it collects under fixed-fee contracts at its now-commissioned Calcasieu Pass facility. Buyers under Plaquemines Phase 2, including ExxonMobil, Chevron, Petronas, and Excelerate, aren’t expected to receive their first contracted cargoes until mid-2027.
Venture Global has long defended its extended commissioning periods as deliberate, allowing plants to be “operational” years before contractual obligations kick in. The company’s Block 14, part of Phase 2, just received federal approval for gas introduction. On Sunday, the plant pulled a record 2.9 bcf of feedgas.
The full Plaquemines facility is now approved to export up to 27.2 million metric tons per year. That capacity boost came with FERC’s blessing earlier this year—despite concerns over increased greenhouse gas emissions.
While the engineering is ambitious, the business model remains divisive. European majors have repeatedly accused Venture Global of exploiting commissioning status to sidestep long-term delivery obligations. The result? Spot profits surge, while long-term customers holding billion-dollar contracts wait.
Plaquemines exported 51 cargoes in Q2 2025 alone—despite still being in commissioning mode. The aggressive pace has helped drive Venture Global’s share price up 150% since April, now just shy of $18.
Critics say the model jeopardizes trust in U.S. LNG. Supporters call it capitalism at its finest.
Either way, with Plaquemines Phase 2 now active and commercial deliveries still years out, Venture Global looks set to keep riding the spot wave—regulatory headaches and reputational bruises be damned.
By Julianne Geiger for Oilprice.com
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