Venture Global's Plaquemines LNG project faces budget overruns and potential legal issues due to prioritizing spot market sales over fulfilling long-term contracts.
The Plaquemines LNG project led by Venture Global is running over budget and could end up with a total price tag of between $21 billion and $22 billion, Reuters has reported, citing Venture Global ’s IPO documents. Plaquemines LNG will be the company’s second production facility after Calcasieu Pass , with a capacity to produce 20 million tons of the superchilled fuel annually. Production should begin in the coming weeks, despite the setbacks. The cost overrun for Plaquemines stands at $2.
The way Venture Global did this was by using a loophole that stipulated it could trade its product on the spot market before the production facility was completed. In view of keeping the spot market business going, Venture Global has been delaying the official completion of the Calcasieu Pass for as long as it has been able to. Now that the investors are suing, it may be running out of postponements.
Liquefied Natural Gas Plaquemines LNG Venture Global Cost Overruns Spot Market Long-Term Contracts Legal Disputes Calcasieu Pass Investors
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