Venture Global working to ship critical LNG cargoes globally, CEO says
Liquefied natural gas exporter Venture Global is working with countries around the world to deliver critical cargoes in the near term to help cover supply shortages, CEO Mike Sabel said on Tuesday at the CERAWeek energy conference in Houston, Texas (U.S.) as the world reels from attacks on energy infrastructure in the U.S.-Israeli war with Iran.
Oil and gas prices are surging following the effective closure of the Strait of Hormuz and attacks on energy infrastructure, including LNG-producing facilities in the Middle East. QatarEnergy said a hit to its LNG plant has knocked out 17% of capacity for up to five years, threatening supplies to Europe and Asia.
"We're working right now with countries around the world to bring in some critical cargoes," he said, including this month and next month.
Venture Global is the second-largest LNG exporter in the U.S. It has said that 31% of its production this year has not been sold under long-term contracts, creating an opportunity to sell LNG to Asian countries most affected by war-related supply disruptions.
The company said it has adequate short-, medium- and long-term supplies to support the market, and that it was prepared to enter into short-term contracts with potential LNG buyers.
Even as Venture Global is constructing its 20-metric MMtpy CP2 LNG plant, it is preparing for expansion by ordering equipment, Sabel said.
Venture Global thinks it can become the U.S.'s largest LNG exporter by 2029 by expanding its capacity of 37 MMtpy to over 85 MMtpy, based on expansions at CP2 and Plaquemines as well as higher production than its nameplate capacity.
Louisiana Governor Jeff Landry, who also spoke at the event, said his state would not limit the number of LNG plants it accommodates and that it has the resources, including pipelines, deepwater ports and other infrastructure to support the investments.
The biggest impediment to continued LNG growth in Louisiana is the shortage of labor, Landry said.
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