US liquefied natural gas developer Venture Global LNG has told customers of its Plaquemines export plant under development in Louisiana that it will start delivering contracted cargoes on schedule and at the already-agreed-upon prices, according to a letter seen by Reuters.
The Virginia-based company wrote on Friday to buyers of Plaquemines phase one - which include British major Shell and Poland’s Orlen - and said it remains committed to beginning long-term deliveries from October 31 despite a surge in global gas prices because of the US-Israeli war on Iran.
“As global energy markets react to the critical developments surrounding Iran and the Middle East, we wanted to assure you that, as of today, phase one remains on schedule,” the letter said.
Companies including BP, Shell, Unipec, Edison, Galp, Repsol and Orlen took Venture Global to arbitration in one of the biggest disputes in the history of the LNG industry.
The companies accused Venture Global of withholding contracted cargoes during commissioning of its nearby Calcasieu Pass plant to take advantage of higher prices on the spot market during the 2021–2023 energy crisis.
While Venture Global - which blamed technical issues for the delays in formal commissioning at Calcasieu - prevailed over Shell, BP is seeking at least $3.7 billion after winning its case, a Venture Global filing showed. Orlen’s case remains pending.
“To be clear, fluctuating market conditions have no impact on our previously communicated schedule,” a Venture Global spokesperson said. “As we reaffirmed on our earnings call last week, nearly 70 per cent of the 2026 cargoes at Plaquemines are already contracted for and we reaffirm that Phase One remains on target to declare COD in Q4 2026.”
The US-Israeli war on Iran and Tehran's attacks on Gulf neighbours have disrupted oil and natural gas exports from the Middle East and forced production stoppages, including in Qatar, which stopped operations at its LNG facilities, affecting some of the world's largest plants and a source that supplies about 20 per cent of global LNG.
Benchmark gas prices have jumped, with Dutch Title Transfer Facility futures trading at a three-year high of around $21 per million British thermal units, and the Japan-Korea Marker near a two-year high around $16.
Venture Global is the second-largest US LNG exporter. Plaquemines is its second export terminal and it shipped two million tonnes of LNG last month from Plaquemines, according to LSEG data. The plant is sending out early commission cargoes even though it is still under development.
The company told customers it will begin developing its annual delivery programme for the first contract year in early May, followed by the second contract year in July.
(Reporting by Stephanie Kelly in London and Curtis Williams in Houston; Editing by Nathan Crooks and Matthew Lewis)
