Venture Global awards a batch of contracts for the development of Plaquemines LNG

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Development of Venture Global LNG Inc.’s Plaquemines liquefied natural gas (LNG) terminal is accelerating with a succession of engineering and procurement contracts.

Baker Hughes Co. (BKR) announced on March 9 that Venture Global had awarded it a major equipment order and notice to proceed with work on the 20 million metric ton/year (mmty) terminal in Plaquemines Parish, LA . The first phase of Plaquemines should produce 10 mmty of LNG.

BKR’s facility in Italy would manufacture the 24 modular compressor trains which are expected to begin arriving pre-assembled in the first half of 2023. BKR and Venture Global said Plaquemines’ installation plan and schedule will resemble those of Calcasieu Pass LNG, which BKR also worked on in 2019 and is currently being commissioned.

In a Wednesday discussion at CERAWeek by S&P Global in Houston, Venture Global CEO Michael Sabel said Calcasieu Pass still holds the record for the fastest construction of a large-scale LNG project. The first phase of the terminal has gone from final investment decision (FID) to shipping its first LNG cargoes in 29 months, and Sabel believes Plaquemines will have the same momentum.

Venture Global has yet to approve the project, but early construction work began last year. Assuming a favorable FID, Plaquemines is expected to enter service in 2024. BKR was awarded a contract in 4Q2020 to supply power generation and power distribution equipment for the Plaquemines project.

On March 8, Honeywell International Inc. announced that it had been asked to create the LNG pre-treatment units for Plaquemines under a contract similar to its work on Calcasieu Pass. Honeywell said its modular units will remove mercury, carbon dioxide, sulfur, water and heavy hydrocarbons from 1.6 Bcf/d of natural gas.

The latest signs of Plaquemines development also coincided with news that Venture Global has made significant progress in contracting future capacity at the facility. Venture Global has announced that it has signed a 20-year sale and purchase agreement (SPA) with a subsidiary of Shell plc for 2 mmty of super chilled fuel.

Shell has already struck a deal to take an additional 2 million from Venture Global’s Calcasieu Pass terminal. Located in southwest Louisiana, Calcasieu Pass loaded its first shipment earlier this month.

The latest agreement for Plaquemines builds on contracts with Polish Oil & Gas Co., aka PGNiG, for an additional supply of 1.5 mmty of LNG, bringing the total under contract with PGNiG to 4.5 mmty. Venture Global has also entered into agreements with China Petroleum & Chemical Corp., aka Sinopec, for 2.8 mmty on a free on board (FOB) basis and 1.2 mmty on a delivered-at-place-unloaded (DPU) basis for terms of 20 years. years.

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