First LNG Cargo Departs Plaquemines To Germany In Race To Replace Russian Gas

Exports from America’s eighth liquefied natural gas facility began this week, highlighted by an LNG carrier departing for Europe. This reinforces the US’ position as the world’s leading LNG exporter and provides tailwinds for President-elect Donald Trump as he urges Europe to increase US energy product purchases in his upcoming second term. 

Venture Global, one of the largest US LNG developers, shipped its inaugural cargo of LNG from its Plaquemines export facility in Louisiana via a company-owned carrier named “Venture Bayou.”

Snapshots of Venture Bayou traveling down the Mississippi River, carrying the first export cargo from Plaquemines LNG

The ship is expexted to arrive in Germany on Jan 8th.

(: Richie Blink)#LNG #ONGT #NatGas #Shale #OOTT #NOLA #Louisiana #Germany #Europe pic.twitter.com/4AszVXKtnV

— Sergio Chapa (@SergioChapa) December 26, 2024

According to Bloomberg ship tracking data, the newly built carrier is en route to deliver the first LNG cargo from Plaquemines to the German utility company EnBW. The shipment is expected to arrive in early January. 

More details on the vessel via Bloomberg…

Venture Global wrote in a statement cited by Bloomberg that the Plaquemines will “produce and export LNG while construction and commissioning continue for the remainder of the project’s 36 trains and associated facilities.”

Plaquemines has several long-term customers, including European utility Electricite de France SA, Polish energy firm Orlen SA, China’s Sinopec and Cnooc Ltd., and Shell plc.

When the Plaquemines LNG facility becomes fully operational, expected in late 2025 or early 2026 according to Venture Global’s project timeline, it will rank among the world’s largest LNG export plants, further securing the US’ position as the world’s top LNG exporter. This development is pivotal, as US LNG has been offered to Brussels as a replacement for Russian piped NatGas.

Venture Global CEO Mike Sabel wrote in a statement: “In just five years, Venture Global has built, produced and launched exports from two large-scale LNG projects which has never been done before in the history of the industry.”

 The potential LNG export boom will likely please President-elect Trump, who recently threatened Europe with tariffs unless it increased its purchase of US energy products next year. 

Also, Venture Global has filed for an initial public offering, with JPMorgan analysts estimating the enterprise value is around $100 billion.

In response to Trump’s comments about the US-EU LNG trade, Goldman analysts said US LNG could “theoretically” replace piped Russian NatGas to the EU.