Next U.S. LNG Project Could Begin Production as Soon as October

The next major liquefied natural gas export terminal in the U.S. could begin production as soon as October, another sign that the plant is ahead of schedule.

Venture Global LNG Inc. offered at least 12 LNG cargoes for loading between Oct. 2021 and Dec. 2022 from the Calcasieu Pass plant in Louisiana, according to traders, who asked not to be identified discussing private matters. If awarded, these would be the first spot cargoes sold from the Calcasieu plant, which is targeting commercial operations to begin in 2022.

Venture Global’s momentum comes as U.S. developers struggle to sign long-term offtake agreements as the Covid-19 pandemic sputtered deal-making. American projects must also now compete with Qatar, which is offering attractive prices to underpin its plans to boost output by 50% this decade.

Venture Global didn’t immediately respond to an email and phone call requesting comment outside normal business hours.

To be sure, LNG tenders aren’t always awarded and the cargoes being offered could be test shipments ahead of normal operations.

Venture Global Chief Executive Officer Mike Sabel said in December that Calcasieu’s progress was ahead of schedule, with the project’s modular approach to construction allowing it to proceed despite the pandemic and a hyperactive hurricane season.

©2021 Bloomberg L.P.

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