The plant is expected to start producing LNG in test mode later this year before entering commercial service in early 2022. Venture Global filed for permission to build the project in September 2015 and received FERC approval to start construction in February 2019. Federal Energy Regulatory Commission (FERC), Venture Global said it has fulfilled the environmental conditions needed to start commissioning and requested FERC give permission to proceed no later than Oct. liquefied natural gas company Venture Global LNG asked federal regulators on Friday for permission to start commissioning liquefaction systems at the company's Calcasieu Pass LNG export plant in Louisiana. "Looks like it will happen next year, which matches our expectations," a third Atlantic LNG source said.Oct 22 (Reuters) - U.S. One long-term buyer from the terminal was balanced in terms of supply for the near term. Not all of Calcasieu Pass' foundation customers were concerned about the timing of when Venture Global declares a commercial operation date for the terminal. "They'll just do what they're allowed to do under their contracts," a second Atlantic LNG market source said. Some foundation customers, based on communications with Venture Global, are concerned the operator will declare commercial startup toward the back end of the allowed window, sources said. The earliest commercial operation date for the long-term contracts underpinning the terminal is in January, and from there Venture Global has a 270-day window thereafter to achieve commercial operability and begin deliveries under the agreements, according to Moody's Investors Service, which said in a report in August that the extended commissioning has "meaningfully enhanced" Venture Global's cash position relative to remaining capital expenditures. Three Venture Global officials did not respond to multiple calls and emails seeking comment. ![]() "They are having the longest commissioning period I have ever seen," one Atlantic LNG market source said. Data on feedgas deliveries suggest Calcasieu Pass has been operating at or near capacity for weeks. By comparison, Cheniere publicly disclosed it had placed its first LNG train at Sabine Pass in Louisiana into commercial service 29 days after it received approval from the regulator to do so, while it was 24 days for the first train at Sempra Energy's Cameron LNG, also in Louisiana. The operator began production in January and has shipped more than 40 cargoes since it started exporting LNG in March, months earlier than expected, and in May US regulators gave Calcasieu Pass permission to enter the first four train blocks into commercial service, though 132 days later as of Sept. US FOB cargo values reached a record high of $73.35/MMBtu Aug. The cost of feedgas, plus a premium, also is borne by the offtaker. That's because the long-term contracts carry some of the lowest fixed liquefaction fees among US exporters, with some said to be below $2/MMBtu. Calcasieu Pass also has short-term deals with China's CNOOC and the trading arm of China's Sinopec.Īt the same time, the longer Calcasieu Pass can operate on a commissioning, or pre-commercial operation date, basis, the more opportunity it has to reap those same benefits from current market fundamentals, with Russia's seven-month-old war in Ukraine lifting delivered LNG prices. Such a move would ease the cost of filling their own consumption needs as winter approaches and give the customers including Shell, Britain's BP, Spain's Repsol and Poland's PGNiG the ability to resell some supplies to capture the wide spread between what they would be paying and what they could fetch for those volumes on the spot market. ![]() Receive daily email alerts, subscriber notes & personalize your experience.
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