Venture Global nears producing LNG from all blocks at Plaquemines plant

US LNG giant Venture Global could be producing LNG shortly from all the blocks at its massive Plaquemines facility, Reuters reported on August 29.
A regulatory finding indicated that the Virginia-headquartered company was given the green light to add nitrogen to Block 15. The introduction of nitrogen is a preliminary step before gas production commences.
The approval from the Federal Energy Regulatory Commission (FERC) follows an earlier authorization on August 27 to allow the introduction of natural gas at Block 18.
Plaquemines boast 18 blocks and two liquefaction trains giving the facility a total production capacity of 27.2mn tonnes per year (tpy), which makes it the second largest LNG plant in the country.
Plaquemines trails only Cheniere Energy’s Sabine Pass, which has six liquefaction units and a production capacity of 30mn tpy. Cheniere is also eyeing adding three more liquefaction units to raise the production capacity to 50mn tpy.
Venture Global is expected to pass through the commissioning phase over the next two years. During the commissioning phase, the company could secure higher prices from sales on the spot market before selling cargoes to its foundation customers ExxonMobil, Orlen, and Shell.
Venture Global previously upset its foundation customers at its Calcasieu Pass facility for the lengthy commissioning phase it went through, all the while selling cargoes for higher prices on the spot market. However, the company won its arbitration case with Shell in August over delayed cargo deliveries.
Despite cost overruns, Plaquemines began producing LNG in mid-December, when the facility was granted permission from regulators to commence production of the super-chilled fuel.
Since December, Plaquemines has been steadily increasing output each month.
In March, Venture Global announced it will increase the nameplate capacity of Plaquemines to 45mn tpy with an investment of $18bn in the Louisiana-based plant.
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