Model of LNG tanker is seen in front of the U.S. flag in this illustration taken May 19, 2022
If the approval is granted, the company will start producing liquefied natural gas (LNG) from the entire Plaquemines plant, achieving full operation more than a year before it is scheduled to deliver contracted volumes to its long-term customers. Once completed, the facility will reach its designed capacity of 27.2 million metric tons per annum (mtpa).
Located in Louisiana, Plaquemines is currently the second-largest LNG plant in the United States. According to data from financial firm LSEG, it accounted for over 17% of total U.S. LNG exports in September. Venture Global, also the country’s second-largest LNG exporter, has been pursuing a strategy of rapid project construction and early production ramp-up. During the commissioning phase, the company sells LNG on the spot market, which generally offers higher liquefaction fees than long-term supply contracts.
Venture Global began production at the Plaquemines facility in December 2024 and has since been exporting LNG on the spot market. The company’s business model has attracted both industry attention and legal disputes. Some of its long-term clients from its first LNG project, Calcasieu Pass—also located in Louisiana—have brought cases before arbitration courts, citing delays in receiving contracted LNG supplies.
Venture Global stated that the delays at Calcasieu Pass were caused by a malfunction in the plant’s electric system, preventing timely delivery. However, certain customers, including BP (BP.L) and Shell (SHEL.L), claimed that the Arlington-based company benefited financially by selling LNG on the spot market instead of supplying them under lower-priced contracts.
The Plaquemines project, once fully operational, is expected to enhance U.S. LNG export capacity significantly and strengthen Venture Global’s position in the global LNG market. The company’s approach of early commissioning and spot sales has enabled it to generate revenue quickly while continuing to expand its production infrastructure.
Venture Global’s request to FERC marks one of the final regulatory steps before full-scale operation of the Plaquemines plant. If approved, the plant will begin processing gas across all its production blocks, allowing the company to operate at maximum output capacity well ahead of its original timeline. This development underscores the ongoing expansion of U.S. LNG exports and the growing role of Louisiana as a key hub in the global energy supply chain.
