Key facts
- Venture Global's average liquefaction fees increased by 69% in the second quarter.
- The Q2 average liquefaction fee reached $6.45 per million British thermal units, up from $3.82 in Q1.
- Higher global LNG prices, influenced by supply disruptions from the Iran war, drove the fee increase.
- 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 Q2.
Venture Global, a U.S.-based LNG producer, reported a significant 69% increase in its average liquefaction fees during the second quarter, reaching $6.45 per million British thermal units (MMBtu), up from $3.82 per MMBtu in the first quarter. This surge is attributed to elevated global LNG prices, exacerbated by supply disruptions linked to the Iran war and damage to Qatar's liquefaction facilities.
The company's sales volume saw a slight decrease, with 466.4 trillion thermal units (TBtu) of LNG sold in Q2 compared to 480.8 TBtu in Q1. Exports from its Calcasieu Pass facility totaled 37 cargoes in Q2, a marginal drop from 38 in Q1, while the Plaquemines facility exported 90 cargoes, down from 92 in the previous quarter.
Liquefaction fees are a core component of earnings for U.S. LNG plants, typically determined by fixed rates in long-term contracts but subject to adjustments based on global market conditions. Venture Global's reported fees reflect a combination of higher spot market prices and shorter-term contract sales, alongside volumes from older, lower-priced agreements.