One of the fastest developed liquified natural gas expert terminals along the U.S. Gulf Coast has started production to ship LNG to numerous European and global customers.
The beginning of commercial export operations at Venture Global’s Calcasieu Pass LNG facility strengthens the U.S. role as leading LNG exporter in the world, thanks to the rise of shale gas production throughout the nation. The project in Cameron Parish, Louisiana, already has several multi-billion-dollar supply agreements.
Final investment decision on Calcasieu Pass was only 65 months ago, making it one of the quickest LNG projects to move from approval to completion, the company says. Venture Global also recently completed the Plaquemines LNG project, which together with Calcasieu Pass could process and ship more than 30 million metric tons of liquefied natural gas per year, which is equivalent to more than 1 trillion cubic feet annually.
“I am incredibly proud of our team who have worked relentlessly and diligently to successfully construct and commission our first LNG project,” said Venture Global CEO Mike Sabel, in a statement. “We are excited to reach this milestone and are grateful for our regulators and supply chain partners who have worked with our team to reach commercial operations as efficiently and safely as possible.”
To produce LNG, natural gas drilled by wells in the U.S. is transported by pipeline to export terminals along the nation’s coastline. The gas is liquified by chilling it to minus 260 degrees Fahrenheit, making it stable for shipping.
Among customers of the U.S. LNG include several European nations, Asia and Africa.
The tariffs imposed by President Trump, some of which have been rolled back, may impact some trade on LNG contracts. However, Europe is aiming to shift away from a reliance on Russian national gas, which opens an LNG trade door for the U.S.
China also had been an LNG long-term contract partner for future delivery, but the steepest of the Trump Tariffs are aimed at that country. When work first began at Calcasieu Pass earlier this decade, Venture Global LNG had signed two 20-year LNG sales and purchase agreements (SPA) with China Gas Hongda Energy Trading, a subsidiary of Chinese natural gas operator China Gas Holdings.
As per the SPAs, China Gas would purchase 1 million tons per annum (MTPA) of LNG from Venture Global's Plaquemines LNG and another 1 MTPA from the CP2 LNG export facility, both located in Louisiana. The outcome of that agreement is not known.
The U.S. now has close to 10 LNG export terminals, most along the Gulf of Mexico coast. Nearly 12 billion cubic feet of LNG was exported each day, on average, in 2024, according to the federal Energy Information Administration.
Domestically, meanwhile, many commercial and industrial energy customers in the U.S. have been moving toward decarbonization of operations, but the rise of data center and transportation electrification is pushing power companies to expand natural gas-fired generation, which already has grown to nearly 40% of the total U.S. utility-scale electricity mix.
Overall, U.S. natural gas withdrawals and production topped 3.9 trillion cubic feet in January, slightly less than December’s nearly 4 trillion cubic feet, according to the EIA.
