Venture Global Starts Long-Term LNG Supply From Plaquemines, Shell First

Shell became the first customer to load LNG under a long-term sales contract from Venture Global's Plaquemines export plant in Louisiana, marking the facility's move into commercial operations just 22 months after producing its first liquefied natural gas.

The Malaga Knutsen tanker departed Plaquemines at 3:26 a.m. (0926 GMT) on Sunday carrying the first commercial cargo for Shell, Venture Global said in a statement. Phase 1 commissioning was completed Saturday.

"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," Venture Global CEO Mike Sabel said.

Who buys Plaquemines volumes now?

Phase 1 customers besides Shell include:

• Orlen
• Sinopec
• CNOOC Gas & Power
• EDF

All are expected to receive LNG under long-term contracts. Those contracts price significantly below current spot benchmarks, which sit near 46-month highs of around $34 per mmBtu at the Dutch Title Transfer Facility in Europe and $32 at the Japan-Korea Marker in Asia.

Why the switch to term supply matters

The move to commercial operations ends, for these contracted volumes, a lucrative stretch for Venture Global. The company has benefited from lengthy commissioning periods at its plants, which allowed it to sell Plaquemines cargoes on the spot market while prices spiked on the back of the ongoing conflict in the Middle East.

That arbitrage window is now closing for Phase 1 volumes. Contracted buyers gain supply at a significant discount to spot — a meaningful cost advantage with European and Asian benchmarks near four-year highs.

Five years after starting up, Venture Global is now the country's second-largest LNG producer, helping the US lead the world in LNG exports. Plaquemines is its second export project.

For gas buyers, the start of term deliveries from Plaquemines adds a new stream of US supply to a market rattled by Middle East tensions. Whether the discounted contract volumes ease pressure on TTF and JKM benchmarks will depend on how quickly the remaining phases ramp up.