Venture Global begins supplying Plaquemines phase 1 customers under long-term LNG contracts

ORLEN

Sun 14:22

Shell lifted the first commercial LNG from Venture Global's Plaquemines Phase 1
Ends a 22-month commissioning period period in which all Plaquemines cargoes sold into the spot market
Customers can now access LNG at contracted prices well below current benchmark prices in Europe and Asia
By Curtis Williams
HOUSTON, Nov 1 (Reuters) - Energy major Shell SHEL.L was the first customer to receive LNG under a long-term sales contract from Venture Global's VG.N Plaquemines export plant in Louisiana, after it completed Phase 1 commissioning and moved to commercial operations, the LNG exporter said on Sunday.
Plaquemines finished Phase 1 commissioning on Saturday, 22 months after the facility produced its first liquefied natural gas, Venture Global said in a statement.
The Malaga Knutsen LNG tanker loaded the first commercial cargo for Shell from Plaquemines and departed at 3:26 a.m. (0926 GMT) on Sunday. 
“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,” said Venture Global CEO Mike Sabel.  
   Phase 1 customers including Shell, Orlen PKN.WA, Sinopec, CNOOC Gas & Power and EDF are expected to receive LNG under long-term contracts. Pricing of those contracts will be significantly discounted from near 46-month highs of around $34 per mmBtu at the Dutch Title Transfer Facility TRNLTTFMc1 benchmark in Europe and $32 at the Japan-Korea Marker JKMc1 benchmark in Asia.
Venture Global has benefited from extensive commissioning periods at its plants. It has previously been able to sell Plaquemines cargoes on the spot market, which has seen prices spike due to the ongoing conflict in the Middle East. 
Just a startup five years ago, Venture Global is now the country's second-largest LNG producer, helping the US lead the world in LNG exports.

 (Reporting by Curtis Williams in Houston; Editing by Nathan Crooks and Joe Bavier)
 ((Curtis.Williams@thomsonreuters.com; +1 346 324 7560;))