BP has announced its approval of Venture Global LNG’s Calcasieu Pass facility to commence commercial operations, putting an end to a prolonged dispute concerning access to liquefied natural gas (LNG). This decision comes after BP reviewed confidential commissioning documents and determined that Venture Global does not require additional time to start commercial production.
The Calcasieu Pass plant, which is Venture Global’s second LNG facility, has been the center of contention between energy giants like BP and Shell. The facility has been producing and shipping LNG for over two years, but it has not supplied contract customers due to its incomplete operational status. Venture Global had requested an extension from the Federal Energy Regulatory Commission to begin commercial operations next year, a request that was met with resistance from customers who sought access to confidential documents for validation.
This decision by BP is a significant boost for Venture Global and for the United States as a whole. By the end of the year, Venture Global is poised to become the second-largest US LNG exporter, solidifying America’s position as a global leader in the LNG market. The Calcasieu Pass plant has a capacity of 20 million metric tons per annum (MTPA), further strengthening the US’s energy export capabilities.
Investors seeking exposure to the burgeoning LNG market can consider investments in the Direxion Hydrogen ETF (ARCA: HJEN) and the First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF (ARCA: EIPX).
BP shares rose by 0.77% to $33.96 in pre-market trading on Thursday following the announcement.
