Plaquemines Expected to Start Natural Gas Liquefaction Processes

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Federal and industry reporting finds natural gas deliveries to liquefied natural gas (LNG) terminals in Louisiana declined from last week, though Industrial Info still expects the Plaquemines facility to debut liquefaction operations no later than Monday.

IIR Energy reported Thursday that Venture Global LNG's (Arlington, Virginia) LNG facility in Plaquemines Parish, Louisiana, could be able to start the process of turning gas into the liquid form by the weekend of December 14-15. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can click here for the project report and here for the plant profile.

Industrial Info data showed the facility began drawing in more than 100 million cubic feet of natural gas per day for liquefaction operations. The facility is fed primarily by the Gator Pipeline, which is tied to two other arteries controlled separately by Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas) and Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta).

Venture Global made a final investment decision on Plaquemines in 2022 and federal regulators gave the company permission to introduce natural gas into its export plant in Louisiana in November.

Once completed, the 18-train facility will be the second-largest LNG export facility in the country. The largest by volume is the Sabine Pass facility in Louisiana, which Industrial Info data show typically accounts for about 30% of total LNG exports.

Both federal reporting and Industrial Info's data, meanwhile, show gas deliveries to LNG facilities in Louisiana were curtailed by a force majeure declaration on a compressor station in Cameron Parish, which sidelined nearly 1 billion cubic feet per day of gas to the region.

Nevertheless, natural gas production remained adequate at around 103.8 billion cubic feet per day (Bcf/d) as of December 12. Feed gas into all of the functioning export terminals reached 14 Bcf/d, consistent with month-ago levels.

"We maintain a positive outlook on both fronts, with the United States supporting global flows ahead of the official onset of winter in the Northern Hemisphere," said Maria Sanchez, a natural gas products and senior analyst at IIR Energy.

LNG became political in the waning months of 2024 as now President-elect Donald Trump pledged to dismantle the court-suspended pause on new facilities from outgoing President Joe Biden. Trump has vowed to support the oil and gas industry, though the United States is already the world leader in oil and gas production and LNG exports.

During the five-day period ending December 5, federal data show 102 billion cubic feet of gas in the liquid form departed U.S. export terminals. That's 30% higher than during the comparable week in 2020.

Venture Global had no public comment on the imminent start of liquefaction operations. Industrial Info data show three other facilities--Corpus Christi stage 3, Golden Pass and Port Arthur--are under construction with a combined capacity of 5.8 Bcf/d in liquefaction capacity.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).