British energy giant Shell has received the first liquefied natural gas (LNG) cargo under a long-term sales contract from US-based Venture Global’s Plaquemines export facility in Louisiana, following the start of commercial operations at the plant’s first phase, Venture Global said on press release published on November 1.
The Malaga Knutsen LNG tanker loaded the cargo and departed on October 31, marking the start of deliveries under long-term contracts at Plaquemines Phase 1, the company added.
“Achieving commercial operations at the first phase of our second LNG project in 53 months is a testament to our team’s relentless dedication and hard work,” Venture Global’s CEO Mike Sabel said.
“We are thrilled to hit another major milestone that enables us to continue delivering reliable, affordable American LNG to the global market. We deeply appreciate the collaboration of our regulators and supply chain partners, whose shared commitment helped us deliver this project safely and on schedule,” Sabel added.
The first phase completed commissioning about 22 months after producing its first LNG. Other long-term customers expected to receive volumes include Poland’s Orlen, China’s Sinopec, CNOOC Gas & Power and France’s EDF, according to Reuters.
Contract prices are expected to be significantly below recent highs of around $34 per million British thermal units (mmbtu) at Europe’s Dutch Title Transfer Facility benchmark and $32/mmbtu at Asia’s Japan-Korea Marker, Reuters reported.
Shell is a major global LNG trader and buyer, purchasing volumes from multiple suppliers to serve customers worldwide. Its integrated gas business spans LNG production, trading, shipping and marketing.
