Key facts
- Venture Global's average liquefaction fees increased by 69% in the second quarter.
- The implied weighted average fixed liquefaction fee reached $6.45 per MMBtu, up from $3.82 in the first quarter.
- Higher global LNG prices, attributed to supply disruptions following the Iran war, boosted fees.
- The company sold 466.4 TBtu of LNG in Q2, a slight decrease from 480.8 TBtu in Q1.
- Calcasieu Pass exported 37 cargoes and Plaquemines exported 90 cargoes in the second quarter.
U.S.-based LNG producer Venture Global reported a 69% increase in its average liquefaction fees for the second quarter, reaching $6.45 per million British thermal units (MMBtu), up from $3.82 in the first quarter. The company attributed this rise to higher global LNG prices, which were influenced by supply disruptions stemming from the Iran war and damage to Qatar's liquefaction facilities.
The company sold and recognized revenue on 466.4 TBtu of LNG during the second quarter, a slight decrease from 480.8 TBtu in the previous quarter. Its Calcasieu Pass facility exported 37 cargoes, down from 38 in the first quarter, while Plaquemines exported 90 cargoes, compared to 92 in the prior quarter.
Liquefaction fees are a critical earnings component for U.S. LNG plants, typically set by fixed fees under long-term contracts but adjustable based on global market conditions. Venture Global's reported fees reflect a mix of higher prices for spot market and short-term contract sales, alongside lower-priced volumes from long-term agreements.