The global liquefied natural gas (LNG) market is shifting as Venture Global, a major player in the sector, announces the start of sales from its Plaquemines terminal in Louisiana. With the recent authorization from the Federal Energy Regulatory Commission (FERC) to introduce feed gas, initial exports could begin as early as January 2025.
These sales include four to five cargoes per month, part of a short-term offer introduced earlier in 2024. Venture Global also ensured flexible loading options from the Calcasieu Pass terminal, despite delays in its commissioning. This strategy optimizes the ability to meet growing market demands.
Strategic Flexibility
The Plaquemines terminal is pivotal for expanding U.S. LNG exports. Some January cargoes were negotiated at prices indexed to the European market (TTF), reflecting market conditions and logistics costs. Prospective buyers are also anticipating reduced freight rates, increasing interest in 2025 cargo offerings.
Shipping costs for LNG carriers in the Atlantic reached historic lows, with daily rates averaging $9,000 at the end of November. This drop, combined with increased cargo availability, strengthens the appeal of Venture Global’s offerings.
Calcasieu Pass: Delays and Adjustments
The Calcasieu Pass terminal faces technical challenges in its power generation facilities, delaying the full start of commercial operations, now expected in April 2024. Nonetheless, Venture Global continues to offer spot cargoes, addressing immediate market needs.
These additional cargoes serve as a strategic response to rising demand driven by geopolitical tensions in Ukraine, European concerns over gas supplies, and colder winter temperatures.
An Accelerated Start for Plaquemines
Designed for rapid production, the Plaquemines terminal employs an innovative approach. In September, Venture Global imported a cargo to cool the infrastructure, allowing a swift transition to initial exports. This method is expected to combine stored LNG with newly produced volumes, effectively meeting demand.
Competitive U.S. LNG prices increase interest from European and Asian markets. For example, January 2025 prices are assessed at $14.334/MMBtu in Europe and $15.202/MMBtu in Asia, according to recent indices.
Through this proactive strategy, Venture Global positions itself as a key player in LNG exports, despite technical and logistical challenges faced by its facilities.
