LNG producer Venture Global raises Plaquemines project cost forecast by $2 billion

Reuters

Thu, Mar 6, 2025, 5:12 AM 2 min read

(Reuters) - Venture Global said connected Thursday it expects the task outgo for its Plaquemines LNG works successful Louisiana to beryllium astir $2 cardinal higher than its erstwhile forecast owed to ostentation and different factors.

The LNG shaper expects the works to present outgo betwixt $23.3 cardinal and $23.8 billion, compared to a scope of $21 cardinal to $22 cardinal earlier. As of December 31, the institution had paid astir $19.8 billion.

Venture Global said costs to implicit the task whitethorn summation further owed to factors specified arsenic ostentation and tariff.

The institution added it has not accounted for caller tariffs by President Donald Trump's administration, which is expected to rise the outgo of instrumentality to acceptable up specified plants.

Last month, U.S. national regulators gave the institution support to summation export capableness of the Plaquemines works to 27.2 cardinal metric tons per annum from 24 mtpa.

The institution besides reported a fourth-quarter nett of $871 million, compared to a nonaccomplishment of $50 cardinal a twelvemonth ago, arsenic its little expenses countered a 6.6% autumn successful gross to $1.52 billion.

Shares of Venture Global, which became 1 of the astir invaluable U.S. LNG companies erstwhile it listed successful January, were up 1.9% astatine $14.50 successful premarket trading.

Venture Global volition besides commencement the process of last concern determination for a 2nd LNG works with a liquefaction capableness of 20 mtpa astatine its Calcasieu Pass installation successful Louisiana, it said. It has already spent $4 cardinal towards it arsenic of December 31.

The institution already has 1 LNG export installation astatine Calcasieu Pass, which is expected to export astatine slightest 10 mtpa erstwhile complete.

The capableness expansions travel astatine a clip erstwhile Venture Global is locked successful declaration disputes with customers specified arsenic BP, Shell and Edison implicit non-receipt of cargoes owed to lengthy investigating and optimizing process.

(Reporting by Tanay Dhumal successful Bengaluru; Editing by Leroy Leo)