Venture
Global, which is developing LNG facilities in Louisiana on the U.S. Gulf Coast
is also becoming the first U.S. producer to buy and operate its own fleet of
LNG carriers.
The
company revealed on Sunday 17 Mar that it has purchased nine vessels, including
three of the largest carriers, with delivery of the vessels due to start later
this year timed to the expected commercial start of the Calcasieu Pass
facility.
Analysts
called the entry into ship operations, versus competitors that sell to traders
or charter vessels, a bold move that
will permit the company to directly sell into the spot market and deliver its
cargos. Removing intermediaries from the transaction is designed to improve
profitability for Venture Global, which highlights that it is currently
developing over 70 MTPA of production capacity. The company started production
at Calcasieu Pass in January 2022 and expects to start Plaquemines LNG before
the end of this year. They are also working on expansion projects at both sites
as well as other potential deals.
CEO Mike
Sabel highlights the fleet as further advancing the integration of the business
across the entire LNG supply chain. Venture Global’s strategy is to span from
natural gas transmission to liquefaction and export, transport on its fleet of
LNG carriers, and regasification capacity in Europe. The company also
previously announced a long-term terminal use agreement for regasification
capacity at National Grid’s UK facility Isle of Grain LNG, which is Europe's
largest LNG import terminal. The company
previously said about three-quarters of its production is being sold to Europe.
The
company however has faced challenges and disputes with customers due to delays
in completing the commissioning of its first facility Calcasieu Pass. While
they have been producing for two years, technical challenges and equipment
malfunctions they contend have delayed the start of commercial operations. The
company recently applied to regulators for delays till late 2024 while
customers including Shell, BP, Repsol, and others filed arbitration claims. The
customers cite delays in meeting their contracts while the company has sold
more than 250 cargoes into the spot market.
Details of the ship construction and
purchase agreements were not revealed but it is believed to be with Hanwha
Ocean, formerly Daewoo Shipbuilding and Marine Engineering, one of the leading
builders of LNG vessels. Venture Global was previously linked to
construction orders with the company confirming yesterday that it will have a
fleet will consist of six 174,000 m3 and three with a cargo capacity of 200,000
m3 vessels. The first
cargo from Calcasieu departed on a JERA vessel in
2022.
They are
highlighting that the vessels are being built with the latest 2-stroke engines
and modern hull forms as well as shaft generator and air lubrication systems to
increase fuel efficiency and lower emissions. They said the selected engines
supported by the shaft generator technology will reduce methane slip compared
to previous designs and engine designs.