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Venture Global gets the go ahead to install natgas in another LNG plant, as production ramps up

Venture Global LNG was granted permission by federal regulators to add natural gas to the seventh block at its Plaquemines facility in Louisiana on Tuesday as it continues to increase production of supercooled gas.

Plaquemines, the company's second LNG plant in Virginia, has seen its production increase rapidly.

According to data provided by financial firm LSEG, the plant was on target to produce 1.1 billion cubic foot (bcf) last Tuesday, down from a peak of 1.3 bcf reached last Wednesday. This is just short of its 1.5 bcfd capacity at Calcasieu Pass.

Venture Global became the most valuable LNG company in the United States when it raised $1.75billion last Thursday, the first major initial public offering under President Donald Trump’s second term.

This pushed the company above its rival Cheniere Energy.

According to the company, Plaquemines could produce more than 27 million metric tons per year (MTPA) at its peak. It said that the entire facility would not be fully operational until 2027.

Venture Global's strategy, according to the company, is to extend commissioning periods in order to maximize profits by selling on the spot market for higher prices than they can achieve under long-term contracts. It will then produce far more than its capacity to sell the additional non-contracted goods.

Venture Global is a party to contract arbitration proceedings brought by the top oil and natural gas producers in the world, including BP and Shell. They also include Edison, Orlen, and Repsol. The cases concern cargoes that were exported from Venture Global's first project - the Calcasieu Pass Plant - which they claim should have been purchased under long term contracts.

Shell, Orlen and Edison have confirmed that arbitration is still ongoing and declined to comment. Venture Global did not respond to a request for comment.

Venture Global's stock was trading at $19.26 during the afternoon of Tuesday. The shares are down 23% since its IPO.

(source: Reuters)