Next US LNG Export Plant Aims to Begin Production in Mid-2024 - Yahoo Finance
Next US LNG Export Plant Aims to Begin Production in Mid-2024
(Bloomberg) -- Venture Global LNG Inc. expects to begin production at its second liquefied natural gas export facility in Louisiana in mid-2024, further cementing to the US as the world’s biggest supplier of the super-chilled fuel.
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The Arlington, Virgina-based company requested approval to receive an LNG shipment to cool down its equipment as part of its start-up process at the Plaquemines LNG facility, according to a regulatory filing dated April 22. That’s a key step before LNG exports can begin.
The shale revolution has unlocked vast reserves of natural gas across the US, pushing the country to overtake Qatar and Australia as the top LNG exporter last year. US deliveries are slated to double by the end of the decade, as demand across Asia rapidly grows and Europe moves to replace Russian pipeline gas.
Plaquemines, which is currently under construction, this last week received some gas supply to its Louisiana pipeline Gator Express. The facility’s total planned capacity is 20 million tons per year, with the first phase to produce 10 million tons.
In an import license request to the Department of Energy, Venture Global said the facility will need to import foreign-sourced LNG to the facility to cool down the plant for cryogenic operations and “may receive up to three LNG carriers.” The producer said that all of its Plaquemines imports would take place this year.
A spokesperson for Venture Global declined to comment on Saturday, referring to the filing.
Venture Global would be the eighth US LNG export facility. Venture Global’s first facility — Calcasieu Pass — began producing LNG in 2022, but isn’t expected to enter commercial operations until end-2024. That’s delayed the start of supply to its anchor customers at Calcasieu Pass, including Shell Plc., BP Plc., and Repsol SA, which have filed arbitration disputing that their contracts should have started sooner.
--With assistance from Stephen Stapczynski.
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Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.