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Venture Global's liquefaction fees for the second quarter of 2014 have risen 69% due to Iran war and higher LNG prices

Venture Global, an American LNG producer, said that the average liquefaction fee in the second quarter was up?69% from the previous three months. This is due to the higher global LNG prices after the Iran War disrupted the supply through the Strait of Hormuz.

According to a regulatory filing, the U.S. exporter of liquefied gas realized an implied weighted-average fixed liquefaction rate of $6.45 for?million British Thermal Units (MMBtu). This is up from $3.82 in the first quarter.

Damage to Qatar's liquefaction plants curtailed LNG exports and sent LNG prices sharply higher.

Venture Global's?weighted-average liquefaction charge reflects both the higher prices it received from cargoes that were sold on the spot-market and under short-term contract, as well as the lower-priced volume?sold through long-term agreements.

Liquefaction charges are an important component of earnings for U.S. LNG facilities. These plants?charge fixed fees in long-term contracts and have the ability to adjust prices based on global LNG markets conditions.

During the second quarter of 2016, the company sold 466.4 TBtu?LNG and recognized revenue, a slight decrease from 480.8TBtu during?the previous period.

Calcasieu Pass exports?37 cargoes compared to?38 the previous quarter. Plaquemines exports 90 cargoes compared to 92. (Reporting by Dharna Bafna in Bengaluru; Editing by Maju Samuel)

(source: Reuters)