Venture Global’s Plaquemines LNG has started receiving natural gas, marking a milestone for the project under construction in southeastern Louisiana and a reminder of new demand ahead in 2024.
Gator Express is comprised of two co-located pipeline laterals, both with a capacity of ~1.9 Bcf/d. Venture Global placed Phase 2 of the project in service; Phase 1, which interconnects with the Texas Eastern Transmission (TETCO) and Tennessee Gas pipelines, has encountered unexpected delays.
The start of gas flows comes nearly three weeks after TETCO received the go-ahead from the Federal Energy Regulatory Commission (FERC) to start service on its own project, the Venice Lateral extension, connecting to Gator Express.
The 36-inch Venice Lateral runs three miles from TETCO’s Line 40 and replaces an existing 2.2-mile segment. Owned by Enbridge (ENB), TETCO also constructed a new compressor station in Pointe Coupe Parish, LA to replace two existing compressors in Iberville and Lafourche parishes. With the compression, the new line will have a maximum capacity of 1.26 Bcf/d from TETCO’s Louisiana mainline to feed Gator Express.
Plaquemines is part of the next LNG project wave set to transform the US natural gas market through 2030. East Daley Analytics tracks Plaquemines and other Louisiana-based LNG projects in the new Southeast Gulf Supply and Demand Forecast. The Southeast Gulf forecast combines our regional supply forecasts for the Haynesville and other Gulf Coast basins with midstream pipe flows/expansions and new LNG demand, for a comprehensive view of the regional gas market. The figure shows EDA’s forecast for pipe flows in the southeastern Louisiana sub-region of the Southeast Gulf Forecast.
The progress at Plaquemines will come as welcome news for Haynesville producers contending with oversupply and prices under $2/MMBtu this spring. Market conditions have been so poor that producers in Louisiana and East Texas have been underdelivering on pipeline nominations, causing Haynesville samples to decline rapidly.
The Plaquemines LNG project appears to be progressing ahead of schedule. At CERAWeek in March, Venture Global announced that Plaquemines would begin taking gas sometime in June, with first LNG production expected this summer. East Daley forecasts Phase 1 of Plaquemines LNG (2.25 Bcf/d) to ramp to full capacity by 2Q25. – Oren Pilant Tickers: ENB.
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