LNG Race Report: Venture Global’s Plaquemines To Become Largest LNG Export Facility In North America
US$18 Billion Expansion To Boost Plaquemines LNG Export Capacity To 45 MTPA
(Image courtesy of Venture Global)
On December 14, 2024, Venture Global’s Plaquemines LNG achieved first production of liquefied natural gas (LNG). Located south of New Orleans, Plaquemines LNG reached the milestone of 20 MTPA of nameplate capacity within 30 months of its final investment decision, joining Calcasieu Pass as Venture Global’s second LNG export plant (see “126 LNG Trains,” September 2023 Gas Compression Magazine, p. 28). On December 26, 2024, Venture Global shipped its first cargo from Plaquemines LNG to Germany.
(Image Courtesy Of Ventura Global)
On March 6, Venture Global announced a major brownfield expansion of Plaquemines LNG. The expansion will consist of 24 trains and represent around a US$18 billion (US$2 billion more than initially forecast) investment in Louisiana.
Venture Global had already received Federal Energy Regulatory Commission (FERC) approval to boost Plaquemines LNG to 27.2 MTPA. The latest announcement would bring the total production capacity to over 45 MTPA, making Plaquemines LNG the largest export facility in North America and overtaking Cheniere’s Corpus Christi Liquefication facility. However, future expansion plans at Corpus Christi Liquefaction could ultimately make the facility larger than Plaquemines LNG.
“Our planned expansion of Plaquemines will make it the largest LNG export facility built in North America, supplying LNG to our allies while making a substantial impact on the US balance of trade,” said Venture Global executive officer (CEO) Mike Sabel. “We believe this flexible incremental capacity will position us to respond rapidly to market growth signals. In a capital-intensive commodity industry, capital will always flow to the most competitive projects, and we believe that an expansion of Plaquemines is one of the most economically efficient opportunities available to quickly meet growing LNG demand. We are grateful for the Trump Administration’s commitment to building out our nation’s critical energy infrastructure. We believe this will be the best regulatory environment in decades.”
Overcoming Project Delays
It hasn’t been an easy road for Venture Global. Located south of Lake Charles, Louisiana, Calcasieu Pass was heavily impacted by the COVID-19 pandemic, two major hurricanes, and unforeseen manufacturing issues with heat recovery steam generators that were meant to form the facility’s power island. On February 17, 2025, Venture Global told its long-term customers that Calcasieu Pass would commence commercial operations on April 15, 2025. Plaquemines LNG, as well as other Venture Global projects Calcasieu Pass 2 (CP2) LNG and Delta LNG, were stymied by the Biden Administration’s pause on pending and future applications for exporting LNG (see “LNG Takes A Knee,” March 2024 Gas Compression Magazine, p. 34). However, Plaquemines LNG was able to carry forward because it was approved during President Trump’s first term.
(Image Courtesy Of Venture Global)
Plaquemines Progress
In its March investor presentation, Venture Global said that it has received a cumulative 52 LNG trains across Calcasieu Pass and Plaquemines LNG, with 34 currently being commissioned across the two sites. By the end of the month, the company estimated it would have activated 18 trains at Plaquemines LNG. For 2025, Venture Global anticipates 219 to 230 cargoes from Plaquemines LNG, of which 78 have already been contracted at a weighted average fixed liquefaction fee of US$7.94 per MMBtu.
Venture Global expects Plaquemines LNG to achieve its commercial operation date in two phases. The first phase, which would represent 13.3 MTPA of nameplate capacity, is expected by Q4 2026. Phase II (6.7 MTPA) is expected by mid-2027. As discussed, Plaquemines isn’t an all-or-nothing approach. Cargoes are expected to be shipped in stages. For example, Venture Global is guiding for 28 to 29 cargoes in Q1 2025, almost all of which are contracted. The ratio flips as the year progresses and the majority of cargoes are uncontracted.
(Source: Venture Global Q4 2024 Investor Presentation)
Another Massive LNG Project Is Underway
In addition to the expansion of Plaquemines LNG, Venture Global announced the execution of purchase orders for an additional 36 trains for its CP2 LNG project, of which 12 trains are already being fabricated. On Venture Global’s Q4 2024 earnings call, the company said that it expects its CP2 project to have an export capacity of at least 28 MTPA thanks to design improvements at Plaquemines LNG. Venture Global estimates that 55 cargoes will be exported during the construction of the facility across the commissioning programs of the project’s two phases thanks to its phased commissioning and startup approach.
Venture Global is forecasting first LNG at CP2 by the second half of 2027. It has already completed the first phase major engineering, procurement, and construction agreements. 90% of engineering is already done for Phase 1 of the project. Additionally, CP2 has secured long lead time equipment, such as power plant equipment, liquefaction, and pre-treatment trains. CP2 is progressing on debt financing Department of Energy export authorization to non-free trade agreement Nations.
On the Q4 2024 earnings call, Venture Global said that FERC’s supplemental environmental impact assessment reiterated that CP2 would have no significant emissions impacts. However, CP2 is still waiting on a notice to proceed from FERC.
(Image Courtesy Of Venture Global)
Venture Global’s Modular Approach
Venture Global has been the industry’s poster child for midscale liquefaction. Calcasieu Pass featured midscale liquefaction trains and refrigerant compressor skids that were shipped to Louisiana from Baker Hughes’ manufacturing facility in Avenza, Italy. Venture Global’s modular approach features an efficient manufacturing process, allowing the company to begin shipping cargoes before the full project is complete. Each 0.626 MTPA train is fabricated off-site and delivered fully assembled. Each block consists of two trains and features a cold box that uses single mixed-refrigerate technology. The refrigerant compressors are driven by electric motors. According to Venture Global, controlled factor settings significantly decrease construction labor and increase site safety, execution quality, and on-time delivery. Venture Global’s strategy is centered around consistency. All four of its projects are in Louisiana and feature the same general pipeline buildouts, on-site power systems, train sizes, and storage tanks (see “Venture Global LNG Doubles Down On Baker Hughes’ Midscale Liquefaction Train Systems,” October 2023 Gas Compression Magazine, p. 22).
Mid-scale LNG trains range from 0.5 to 2 MTPA. Small, light aeroderivative gas turbines like the LM2500 and the LM6000 are often used in LNG trains in this range (see “Venture Global LNG Doubles Down On Baker Hughes’ Midscale Liquefaction Train Systems,” October 2023 Gas Compression Magazine, p. 22). Baker Hughes’ LM9000 extends train sizes to the upper limits of the mid-range. It offers high efficiency (44%) and up to 73 MW of power. It is well suited to LNG plants operating in mechanical drive to move the large compressors used in liquefaction.
Earlier this year, Baker Hughes announced another major gas technology order for Venture Global LNG. Baker Hughes signed a multi-year services frame agreement, including maintenance, inspection, repairs and engineering services, to support Phase I and Phase II of Plaquemines LNG. The equipment order and services agreement were both secured in Q4 2024.
“As power demand surges, LNG has a critical role to play in providing a reliable, flexible fuel source that can be quickly scaled to meet rising demand,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes. “We have been a trusted partner in natural gas operations for more than 30 years, and our collaboration with Venture Global is a key example of what our industry needs more of today: businesses coming together to leverage best-in-class technologies and services that can deliver reliable and efficient natural gas operations to support sustainable energy development.”
“Baker Hughes continues to be a trusted partner for Venture Global in delivering a secure, reliable energy supply to the world and we are thrilled to add another significant milestone on our partnership,” said Sabel.
Venture Global named Baker Hughes as its strategic technology supplier for more than 100 MTPA of production capacity. Baker Hughes has already provided comprehensive LNG solutions to the Calcasieu Pass and Plaquemines LNG facilities.
(Image courtesy Of Venture Global)
LNG Demand Supports Future Project Expansions
(Image courtesy Of Venture Global)
Even as LNG exporters like Venture Global race to bring new projects online, the US Energy Information Administration is still expecting increases in the Henry Hub natural gas price in 2025 and 2026 as demand for natural gas grows faster than supply (see “Higher Henry Hub Natural Gas Prices Ahead,” March 2025 Gas Compression Magazine, p. 46). Part of the reason why demand is so high is due to higher exports to Europe. In 2024, a whopping 70% of Venture Global’s exports went to Europe compared to just 14% for Asia.
Natural gas and LNG demand could continue to rise if hydrogen investment slows. 2023 was a record year for hydrogen production at US$3.9 billion invested. But only US$800 million was invested in 2024 due to project cancelations, problems with hydrogen availability, affordability, and feasibility (see “ESG Quarterly Callout: energy Transition Investment Trends,” April 2025 Gas Compression Magazine, p. xx).
All told, the long-term demand for LNG is strong, hence why Venture Global is eager to get new projects and expansions to existing projects up and running.
