Venture Global Produces First LNG at Plaquemines Plant, Edging Out Competitors

(Reuters) — Venture Global LNG on Friday produced its first liquefied natural gas (LNG) from its Plaquemines plant in Louisiana, the company said in a statement.

This marks the first new U.S. plant in two years to produce the super-chilled gas, beating Cheniere Energy's LNG.N Corpus Christi midscale expansion project to market.

With first production of super-chilled gas 30 months after the project got the financial go-ahead, Venture Global has now built two of the fastest greenfield LNG projects to move from financial approval to producing first LNG, the company said.

When fully completed Plaquemines will be one of the largest LNG plants in the world and help keep the United States ranked as the world's largest exporter of the super-chilled fuel.

"Between current and planned facilities Venture Global is prepared to invest $50 billion in energy projects in the United States," said Venture Global CEO Mike Sabel.

Friday's production kicks off an extended commissioning period in which Venture Global retains all revenue from shipments.

Some long-term contract customers of the Louisiana facility may wait up to two years to get their cargo under the commissioning schedule, which extends to 2026 in the first phase and to 2027 in the second, a July offer of senior notes showed.

The company on Friday said its strategy is to produce LNG while it continues to build the plant.

Similar waits at another Venture Global plant, Calcasieu Pass, have led to contract disputes sent to arbitration by BP, Shell, Edison, Repsol and Orlen.

The disputes could cost Venture Global billions of dollars if it loses the cases, separate financial documents show.

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