CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open platformOpen platform

Venture Global begins supplying Plaquemines phase 1 customers under long-term LNG contracts

By Reuters News

By Curtis Williams

HOUSTON, Nov 1 (Reuters) - Energy major Shell SHEL.L was the first customer to receive LNG under a long-term sales contract from Venture Global's VG.N Plaquemines export plant in Louisiana, after it completed Phase 1 commissioning and moved to commercial operations, the LNG exporter said on Sunday.

Plaquemines finished Phase 1 commissioning on Saturday, 22 months after the facility produced its first liquefied natural gas, Venture Global said in a statement.

The Malaga Knutsen LNG tanker loaded the first commercial cargo for Shell from Plaquemines and departed at 3:26 a.m. (0926 GMT) on Sunday.

“Achieving commercial operations at the first phase of our second LNG project in 53 months is a testament to our team's relentless dedication and hard work,” said Venture Global CEO Mike Sabel.

Phase 1 customers including Shell, Orlen PKN.WA, Sinopec, CNOOC Gas & Power and EDF are expected to receive LNG under long-term contracts. Pricing of those contracts will be significantly discounted from near 46-month highs of around $34 per mmBtu at the Dutch Title Transfer Facility benchmark in Europe and $32 at the Japan-Korea Marker benchmark in Asia.

Venture Global has benefited from extensive commissioning periods at its plants. It has previously been able to sell Plaquemines cargoes on the spot market, which has seen prices spike due to the ongoing conflict in the Middle East.

Just a startup five years ago, Venture Global is now the country's second-largest LNG producer, helping the US lead the world in LNG exports.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.