Venture Global Ain’t Waitin’ Around
Less than two months after the administration slapped an indefinite delay on permits and approvals for new LNG projects, the dominos have started to fall. The global customers needed to lock down sales agreements so developers can secure financing aren’t signing up. Too risky, say Japan and China. Others may soon follow. After only eight years, the U.S. LNG export industry, which now claims the world’s top spot, is facing a crippling growth crisis that has upended plans to add more LNG capacity to meet rising demand over the long term. All of this in an executive finger snap.
Reese Energy Consulting today is following the latest LNG news starting with Qatar, which looks to reclaim its former #1 title by expanding the Gulf nation’s LNG output by 85% and seizing a 25% share of the global market by 2030. Don’t think for a second it hasn’t been hopped-up and bug-eyed on the ripe and stymied situation here.
Meanwhile, don’t look for Venture Global to take up knitting while awaiting a government GO light. The Va-based LNG operator is out to reclaim its destiny come hell or highwater, starting with an emboldened new strategy to circumvent the current permit and approval delays by grabbing a greater share of the LNG supply chain. And that’s just for starters.
Venture Global reports it will acquire a fleet of nine LNG tankers to first serve its 10 million MTPA Calcasieu Pass export terminal in La. Commissioning is expected by year end. Phase II with a capacity of 20 million MTPA is slated for production in 2026. A second terminal in Plaquemines, La., is on the whiteboard. The company also has a 16-year deal starting in 2029 to regasify its cargoes at the Isle of Grain LNG receiving terminal outside of London. Finally, should the moratorium on LNG permits persist, Venture Global says it will look outside of the U.S. to develop more liquefaction facilities.