Date Set for Commercial LNG Operations at Calcasieu Pass

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Already well above the expected average for the year, the U.S. export potential for liquefied natural gas (LNG) could be lifted further once commercial operations begin at the Calcasieu Pass terminal, Venture Global LNG (NYSE:VG) (Arlington, Virginia) said late Monday.

Venture Global already runs the facility in Cameron Parish, Louisiana. IIR Energy data show the facility has a nameplate capacity of 1.6 billion cubic feet per day (Bcf/d) in exports of natural gas in the liquid form. Data show the plant, however, was operating at around 70% of its peak capacity last week.

It's been operating in the commissioning phase over the last three years. It's unclear if the lower capacity is due to operational issues or because it's only loading spot cargos because the facility is still in the pre-commercial phase.

Late Monday, the company said it was targeting commercial operations by April 15.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Production Plant Database can learn more from a detailed plant profile here.

In a statement, Venture Global said commercial operations would finally start several years after it made its final investment decision, "despite substantial impacts including two hurricanes, the COVID-19 pandemic, and major unforeseen manufacturing issues."

Those issues included problems with its power generators. Reporting from the Reuters news service found the delay in moving to commercial operations triggered arbitration cases from the likes of BP (NYSE:BP) (London, England), Shell plc (NYSE:SHEL) (London, England) and Spanish energy giant Repsol (Madrid).

Patrick Pouyanne, the head of French supermajor TotalEnergies SE (NYSE:TTE) (Courbevoie, France), told Reuters earlier this month that it was not pursuing Venture Global as a supplier. Venture Global said, however, that it was ready to meet its 20-year contract terms for low-cost, clean supplies of LNG as operations ramp up.

None of those companies had secured volumes from Calcasieu Pass, however.

Operating the Plaquemines LNG export terminal as well, Venture Global said all of its facilities for super-chilled gas would be complemented by carbon, capture and sequestration (CCS) technology.

Former President Joe Biden enacted a pause on new export terminals while his administration studied the potential emissions up and down the LNG supply chain. President Donald Trump overturned that order in one of his first acts of office in January.

This week, Trump created a special council formed to ensure U.S. energy dominance. As part of that effort, his government issued a permit to Commonwealth LNG for LNG exports from its planned facility in Cameron Parish.

Commonwealth is working to develop a facility that would have a design capacity of about 1.2 Bcf/d in LNG exports. Subscribers can learn more by viewing the project report.

Already the world leader in oil production, the U.S. is now the top exporter of LNG, with an expected average of 14 Bcf/d this year.

Export levels are already beyond that. The eight operational LNG terminals are working at 92% of their peak design capacity, but exports as of Monday were at 16 Bcf/d even with some plants off-peak. Venture Global's newly-launched Plaquemines facility is still ramping up.

That level, 16 Bcf/d, is the expected average next year for U.S. LNG exports.

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).