Development of Venture Global LNG Inc.’s Plaquemines liquefied natural gas (LNG) terminal is heating up with a succession of engineering and procurement contracts.

Venture Global Plaquemines LNG

Baker Hughes Co. (BKR) announced March 9 that Venture Global had awarded it with a major order for equipment and the notice to proceed on work for the 20 million metric tons/year (mmty) terminal in Plaquemines Parish, LA. The first phase of Plaquemines is expected to produce 10 mmty of LNG.

BKR’s facility in Italy would manufacture the 24 modularized compression trains that are planned to start arriving pre-assembled sometime in the first half of 2023. BKR and Venture Global have said the installation plan and timeline for Plaquemines will resemble those for Calcasieu Pass LNG, which BKR also worked on in 2019 and is currently being commissioned.

During a Wednesday discussion at CERAWeek by S&P Global in Houston, Venture Global CEO Michael Sabel said Calcasieu Pass still holds the record for the fastest construction of a large-scale greenfield LNG project. The first phase of the terminal went from final investment decision (FID) to shipping its first LNG cargoes in 29 months, and Sabel believes Plaquemines will have the same momentum.

Venture Global has not yet sanctioned the project, but early construction work started last year. Assuming a favorable FID, Plaquemines is expected to enter service in 2024. BKR won a contract in 4Q2020 to provide power generation and electrical distribution equipment for the Plaquemines project.

On March 8, Honeywell International Inc. announced it was tapped to create the LNG pretreatment units for Plaquemines in a contract similar to its work on Calcasieu Pass. Honeywell said its modular units would remove mercury, carbon dioxide, sulfur, water and heavy hydrocarbons from 1.6 Bcf/d of natural gas.

The latest signs of development for Plaquemines also coincided with news that Venture Global made significant progress contracting the facility’s future capacity. Venture Global announced that it inked a 20-year sales and purchase agreement (SPA) with an affiliate of Shell plc for 2 mmty of the super-chilled fuel.

Shell has already made an agreement to take another 2 mmty from Venture Global’s Calcasieu Pass terminal. Located in southwestern Louisiana, Calcasieu Pass loaded its first cargo at the beginning of the month.

The newest agreement for Plaquemines builds on contracts with Polish Oil & Gas Co., aka PGNiG, for an additional 1.5 mmty of LNG supply, bringing the total under contract with PGNiG to 4.5 mmty. Venture Global also locked in agreements with China Petroleum & Chemical Corp., aka Sinopec for 2.8 mmty on a free-on-board (FOB) basis and 1.2 mmty on a delivered-at-place-unloaded (DPU) basis for terms of 20 years.