Venture Global turns on Calcasieu Pass LNG export project, delivering low-cost gas to global customers in record time

What is the significance of Calcasieu Pass beginning LNG exports?

Venture Global LNG has commenced commercial operations at its Calcasieu Pass liquefied natural gas (LNG) export terminal in Louisiana, marking a pivotal moment for U.S. LNG infrastructure. The terminal has now started delivering long-term LNG supplies to international buyers, just 68 months after Venture Global reached final investment decision (FID)—placing it among the fastest greenfield LNG developments globally.

The launch establishes the company as an active exporter in a market increasingly shaped by energy security concerns and the push for diversified natural gas sources. The project also positions the United States to deepen trade links with key European and Asian energy consumers, leveraging cost-competitive LNG pricing over multi-decade contracts.

How did Venture Global deliver the project ahead of schedule?

Venture Global achieved this rapid delivery using a first-of-its-kind modular construction strategy, which integrated eighteen mid-scale liquefaction trains into nine process blocks. The approach allowed sequential installation and commissioning, accelerating progress while limiting disruptions typically faced by large-scale energy infrastructure projects.

This execution model proved crucial in withstanding severe headwinds, including pandemic-related restrictions, hurricanes on the Gulf Coast, and power island component failures that led to force majeure declarations. The company undertook a multi-year remediation plan to address these issues, ultimately restoring all critical systems and validating the project’s redundancy-focused design. Calcasieu Pass is now fully operational, with safety systems meeting regulatory and industry standards.

What infrastructure underpins the Calcasieu Pass terminal?

Calcasieu Pass sits on a 432-acre site in Cameron Parish, Louisiana, featuring about one mile of deep-water frontage to accommodate LNG tanker operations. The terminal incorporates 10 million tonnes per annum (MTPA) of nameplate capacity, enabled by modularised 0.626 MTPA liquefaction trains and supported by three pre-treatment units.

To manage exports, the facility includes two ship loading berths for LNG vessels up to 185,000 cubic metres in capacity. Storage needs are met through two 200,000 cubic metre containment tanks on-site. Energy requirements are served by a 720 MW combined-cycle gas turbine power plant and an additional 23 MW aeroderivative turbine. Feedstock gas is delivered via the 24-mile, 42-inch TransCameron Pipeline, which connects the facility to major U.S. gas transmission systems near Grand Chenier, Louisiana.

How will global LNG markets benefit from Calcasieu Pass operations?

The start of LNG exports from Calcasieu Pass introduces low-cost U.S. LNG volumes into a tight global market. Venture Global has signed long-term sales agreements with average liquefaction fees of under $2 per million British thermal units (mmbtu), giving customers highly competitive pricing for the 20-year duration of their contracts. These pricing structures offer buyers protection from short-term volatility and help diversify away from geopolitically sensitive suppliers.

Europe, in particular, stands to benefit as it looks to solidify post-crisis gas security. U.S. LNG has become a critical component of European energy diversification strategies, especially following the sharp decline in Russian pipeline gas exports since early 2022. The commercial ramp-up of Calcasieu Pass will expand that supply pool at a time of high demand and policy alignment with American energy exports.

What does current market sentiment indicate about Venture Global’s performance?

While Venture Global’s infrastructure success represents a commercial milestone, investor sentiment remains mixed due to ongoing legal and operational headwinds. Venture Global Inc. (NYSE: VG), which went public in January 2025 at $25 per share, has since seen its stock decline by approximately 66%, currently trading near $8.38.

This steep drop reflects lingering concerns around arbitration claims filed by major clients, including Shell and BP, who have alleged that Venture Global intentionally delayed cargo deliveries to benefit from higher spot market prices. The legal proceedings have created uncertainty around the company’s contract integrity and future liabilities.

Financially, Venture Global posted a net income of $1.48 billion on revenues of $4.97 billion over the trailing twelve months. The firm’s forward price-to-earnings (P/E) ratio stands at 6.36, suggesting potential undervaluation if legal issues are resolved and LNG operations stabilise.

Despite the earnings, the market remains cautious, and analysts generally recommend a ‘Hold’ position on the stock. Investors are expected to monitor upcoming legal resolutions, the performance consistency of Calcasieu Pass, and the progress of new projects like Plaquemines LNG and CP2 LNG before making further investment decisions.

How does safety performance reflect on execution and oversight?

Calcasieu Pass not only delivered ahead of schedule but also maintained a notable safety record throughout its multi-year construction phase. Venture Global stated that the project outperformed the heavy construction industry’s Total Recordable Incident Rate (TRIR), as measured by the U.S. Bureau of Labor Statistics, by a substantial margin.

This performance came despite the compounding challenges posed by COVID-19, natural disasters, and complex engineering timelines. The achievement points to strong regulatory collaboration and rigorous contractor oversight, both of which were credited by CEO Mike Sabel in a statement marking the commercial milestone. The safety results are likely to bolster Venture Global’s standing with regulators and industry partners in future project developments.

How does Calcasieu Pass fit into broader U.S. energy policy and trade strategy?

The operationalisation of Calcasieu Pass contributes to the U.S. government’s strategic objective of increasing energy exports while supporting allied energy security. U.S. LNG infrastructure has played a prominent role in reshaping global energy dynamics in the past five years, as demand for flexible and secure energy has surged amid supply shocks and geopolitical instability.

Projects such as Calcasieu Pass also enhance the U.S. balance of trade, as LNG exports now generate multi-billion-dollar inflows. These exports help offset trade deficits while expanding the country’s geopolitical influence. In the context of a shifting global energy market, the project underlines the long-term competitiveness of American gas on the world stage.

The launch of commercial operations at Calcasieu Pass marks a turning point for Venture Global and U.S. LNG capacity. While the company faces scrutiny in public markets due to legal disputes and stock volatility, its infrastructure achievements offer a clear roadmap for scaling future LNG projects. As the market awaits clarity on litigation outcomes and ramp-up performance, the Calcasieu Pass terminal stands as both a commercial enabler and a geopolitical asset in the global energy supply chain.