Page 4 - NorrthAmOil Week 43 2021

NorthAmOil COMMENTARY NorthAmOil

Venture Global makes progress

ahead of Calcasieu Pass start-up

Venture Global LNG is preparing to begin commissioning on its Calcasieu Pass

liquefaction plant in Louisiana after striking three supply deals with China’s Sinopec

US GULF COAST US-BASED Venture Global LNG is making Momentum
advances at both its Calcasieu Pass facility, which At Calcasieu Pass, Venture Global has requested
WHAT: is due to enter commercial service soon, and its permission from US regulators to begin com-
Venture Global has proposed Plaquemines terminal – both on the missioning liquefaction systems. The company
asked regulators for Louisiana Gulf Coast. The company’s progress told the US Federal Energy Regulatory Com-
permission to begin appears to be driven in part by three deals with mission (FERC) in a filing last week that the
the commissioning of China’s Sinopec, details of which emerged last environmental conditions required to begin
liquefaction systems at week. (See NorthAmOil Week 42) commissioning had been met, and that it was
Calcasieu Pass LNG. On October 19, the US Department of Energy therefore seeking permission to proceed. Once
(DoE) made public a letter showing that Ven- permission is granted, the facility would start
WHY: ture Global had signed two 20-year supply deals producing LNG in test mode later this year,
The terminal is due to with Sinopec, for a combined 4mn tonnes per before entering commercial service in 2022.
begin producing LNG in year (tpy) of LNG. Both deals involve supply Days later, Reuters reported that Venture
test mode this year before from Plaquemines. Two days later, details of a Global had also asked the FERC for permission
entering commercial further deal between Venture Global and Sino- to start early work at the site of the Plaquem-
service in 2022. pec’s Unipec trading arm – for 1mn tpy of LNG ines terminal. The company is reported to have
to be supplied from Calcasieu Pass – emerged asked for permission by November 25 to start
WHAT NEXT: in a separate letter from the US company to the installing piles and pile caps for the heavy haul
The company has also DoE. bridge at the site. The bridge will allow for heavy
requested permission to Venture Global itself has not commented on modules to be transported to the site from off-
begin early work on its the deals, but in the subsequent days, the com- loading facilities on the Mississippi River.
proposed Plaquemines pany was reported to be moving forward with This comes ahead of a final investment deci-
LNG terminal. plans for both Calcasieu Pass and Plaquemines. sion (FID) on Plaquemines that is being targeted

P4 www. NEWSBASE .com Week 43 28•October•2021