Venture Global recently announced the start of commercial operations at its inaugural liquefied natural gas (LNG) export project, Calcasieu Pass, and the commencement of long-term, low-cost US LNG sales to its contracted customers.
Achieving this milestone just 68 months after the final investment decision, Calcasieu Pass stands among the fastest greenfield LNG projects ever completed, underscoring Venture Global’s rapid ascent in the global LNG market.
The project’s multi-billion-dollar contracts are expected to deliver a significant positive impact on the US balance of trade, particularly with several European allies, as the facility begins delivering LNG under 20-year agreements at some of the world’s most attractive price points — average liquefaction fees are under US$2 per MMBtu.
“I am incredibly proud of our team who have worked relentlessly and diligently to successfully construct and commission our first LNG project,” said Venture Global CEO Mike Sabel.
“We are excited to reach this milestone and are grateful for our regulators and supply chain partners who have worked with our team to reach commercial operations as efficiently and safely as possible.”
Calcasieu Pass’s rapid completion was enabled by its innovative, modular design, featuring multiple mid-scale liquefaction trains and process facilities delivered and installed sequentially.
This first-of-its-kind configuration, combined with Venture Global’s owner-led construction approach, allowed the project to overcome significant unforeseen challenges, including a global pandemic, two hurricanes, and a force majeure event stemming from major manufacturing issues with the facility’s power island.
Following a comprehensive, multi-year rectification and remediation program focused on key facility components, Calcasieu Pass is now fully prepared to operate safely and reliably.
The project’s built-in redundancy features further enhance its operational resilience.
Despite the construction hurdles, Calcasieu Pass maintained an exemplary safety record, outperforming the industry average Total Recordable Incident Rate as defined by the US Bureau of Labor Statistics for the heavy construction sector.
This achievement highlights the company’s commitment to safety and operational excellence.
With a nameplate liquefaction capacity of 10 million tonnes per annum, Calcasieu Pass is poised to strengthen US energy ties with key international partners and cement Venture Global’s position as a leading force in the LNG export sector.
The project’s long-term contracts will ensure stable, competitively priced LNG supplies to customers for decades to come.
As the global demand for LNG continues to rise, the successful launch of Calcasieu Pass marks a significant step forward for US energy exports and the nation’s role in supporting energy security for allies worldwide.
