LNG

An International Chamber of Commerce (ICC) arbitration tribunal has ruled that Venture Global breached its LNG sales and purchase agreement (SPA) with Portugal’s Galp by failing to declare commercial operations at its Calcasieu Pass terminal in a timely manner.

Venture Global is in preliminary discussions to sell additional US LNG volumes of LNG to Chinese buyers. For PetroChina, the potential supply would total more than 1 mtpa, people familiar with the matter told Bloomberg.

ConocoPhillips has committed to offtake 1 million ton per annum (mtpa) of LNG from Venture Global for 20 years, starting in 2020. The deal further expands Venture Global’s sales portfolio. The company has over 100 mtpa of capacity in production, construction, or development making it one of the largest US LNG exporters.

Venture Global has filed with the U.S. Federal Energy Regulatory Commission (FERC), seeking authorization to place its Phase 1 Plaquemines LNG export terminal into service, the final regulatory hurdle before commercial start-up. If approved, Venture Global could meet its targeted Q4-2026 commercial operation date.

The US Court of Appeals has removed a major legal obstacle to Venture Global’s CP2 LNG export terminal in Louisiana, upholding the Federal Energy Regulatory Commission’s (FERC) approval of the $28 billion project and its associated CP Express pipeline.

Venture Global is well positioned to capture most incremental demand arising from Qatari supply constraints, given the rapid build-out of its US liquefaction capacity, RBC Capital Markets said in an investor note.

One US LNG cargo reached China on 16 July, the first in seventeen months, but it may never be imported. Our tracking shows the Al Fat'h diverted from Huizhou, an ordinary customs berth, to bonded Yangpu, where a cargo can wait, clear customs, or leave again with duty never falling due. Which of those happens is not yet knowable, and Beijing's tariff on US LNG still stands.

Venture Global’s average liquefaction fee surged 69% in the second quarter to an average $6.45 per million British thermal units, up from $3.82/MMBtu in the first quarter, as higher LNG prices lifted returns on commissioning cargoes and short-term sales, the company said in a regulatory filing.

Venture Global and Greece’s Atlantic-SEE LNG Trade have doubled the volume under their long-term supply agreement, raising the commitment to at least 1 mtpa of US LNG starting in 2030 for a two-decade tenure.

Venture Global and Thailand’s state-controlled energy giant PTT PCL are in advanced talks for binding LNG offtake, supposedly from the Plaquemines or CP2 export facilities in Louisiana. If finalized, the deal would help diversify Thailand’s LNG supply away from Middle Eastern sources.