Venture Global Shifts from Delta LNG to Focus on Other Projects

Venture Global (VG) called off its permitting process for the proposed Delta LNG terminal to concentrate on projects that can be done sooner and more easily.

In a letter to the U.S. Federal Energy Regulatory Commission (FERC) on June 10, Venture Global informed the government that the company was withdrawing Delta LNG from the FERC’s pre-filing review process and would focus on expanding the Plaquemines LNG site.

“The Plaquemines Expansion Project will produce approximately the same quantities of LNG as the proposed Delta LNG Project, but on a faster schedule than the proposed Delta LNG Project,” the company said.

Venture Global started Delta LNG’s permitting process in 2019 and had, prior to withdrawing, set a final investment decision on the 24.4 million tonnes per annum (mtpa) project for 2029. According to the letter, VG will focus on the Plaquemines Expansion Project.

The move did not surprise some analysts. According to East Daley Analytics (EDA), Delta was the least likely of Venture Global’s projects to find success, at least in the company’s planned time frame.

“In our view, Delta LNG was never likely to go through,” said Oren Pilant, an analyst for EDA, in an email to Hart Energy. “We assumed that Venture Global would have its hands full developing not only Plaquemines LNG but also the CP2 [Calcasieu Pass 2] facility, which will be at least as large as Plaquemines LNG (20 mtpa).”

The news had a positive effect on Venture Global’s stock price. VG’s stock stumbled out of the gate after the company’s IPO in January, starting at $25 and trending downward until hitting a low of $7 in April, after which shares began moving in a positive direction.

The stock price closed at $15.74 on June 9 and then jumped to $17.39 on June 11, the day after the FERC released VG’s Delta announcement. On June 13, prices were at $17.41 at 2:30 p.m. CST.

The Delta LNG site lies south of the Plaquemines LNG plant. Both are along the Mississippi River south of New Orleans. Plaquemines started LNG production at the end of 2024.

VG started pre-filing with FERC for the Plaquemines LNG Expansion Project in April. The project, to be built adjacent to the current Plaquemines site, will add 12 liquefaction blocks able to produce 18.6 mtpa of LNG, according to Venture Global’s filing.

Earlier in 2024, Venture Global’s leadership indicated that the company would focus on expansion projects rather than new site development.

“As far as timing goes, the large brownfields will shift in front of CP3 and Delta,” said Michael Sabel, Venture Global CEO, during the company’s first quarter earnings call.

Pilant noted that logistics also favor LNG development west of the Delta site. There is less traffic around Calcasieu Pass and better access to energy infrastructure.

VG started site work on the Calcasieu Pass 2 project on June 3.

“The facilities at Calcasieu Pass also have better access to cheap natural gas from Gillis Hub, as compared to Plaquemines LNG (and the canceled Delta LNG), which has to compete with SE utilities for a limited available supply,” Pilant said.

Venture Global told the FERC it would review the Delta project at a later date.