Venture Global Announces Major Brownfield Expansion of Plaquemines LNG

Rhea-AI Summary

Venture Global (NYSE: VG) has announced a major brownfield expansion of its Plaquemines LNG facility near New Orleans, Louisiana. The expansion will add 24 trains, representing an $18 billion additional investment and bringing Venture Global's total US project investments to over $75 billion.

The facility's production capacity will increase by over 18 MTPA, elevating the total expected capacity from 27 MTPA to more than 45 MTPA, making it North America's largest LNG export facility. The expansion will support hundreds of permanent Louisiana jobs and thousands of indirect jobs across more than 30 states.

The company expects to make a Final Investment Decision on the expansion following first production at CP2. The project, initially approved during President Trump's administration, aims to supply LNG to allies while improving the U.S. balance of trade.

Positive

• Major capacity expansion from 27 MTPA to 45+ MTPA
• $18B additional investment in Louisiana
• Creation of hundreds of permanent jobs
• Facility positioned as North America's largest LNG export facility
• Strategic positioning for market growth

Negative

• Significant capital expenditure requirement of $18B
• Final Investment Decision dependent on CP2 production completion
• High execution risk due to project scale

Insights

Financial Analyst

Venture Global's $18 billion brownfield expansion at Plaquemines LNG represents a strategic scaling of the company's core business with significant implications for its financial outlook. This expansion will increase production capacity by 67% (from 27 MTPA to over 45 MTPA), positioning Plaquemines as North America's largest LNG export facility.

The brownfield nature of this expansion is financially advantageous compared to greenfield alternatives, leveraging existing infrastructure and likely offering better capital efficiency. With total company investment reaching $75 billion across its portfolio, Venture Global is making a substantial bet on continued strong global LNG demand.

Particularly noteworthy is the phased capital deployment strategy, with the final investment decision coming only after first production at their CP2 facility. This sequential approach reduces simultaneous capital exposure while allowing the company to adjust expansion timing based on market conditions.

The announcement's timing amid strengthening regulatory support for energy infrastructure development reduces execution risk. While the $18 billion capital requirement is substantial, the company's established operational presence and the brownfield approach should facilitate financing options. Venture Global is clearly positioning itself as the dominant LNG export player in the U.S. market with this aggressive capacity expansion.

Energy Markets Specialist

Venture Global's expansion announcement signals confidence in the long-term structural growth of global LNG markets despite recent spot price volatility. By increasing Plaquemines' capacity to over 45 MTPA, the company is positioning itself to capture significant market share in the next wave of U.S. LNG export growth.

The brownfield expansion approach is particularly strategic from a timing perspective. While greenfield projects face increasingly lengthy permitting processes, brownfield expansions can typically move forward more efficiently. This creates a competitive advantage in bringing new capacity online to meet projected supply gaps in the 2026-2030 timeframe.

The phased implementation tied to CP2's completion demonstrates disciplined capital allocation while maintaining optionality. Global LNG demand projections remain robust, driven by Asian economic growth and European energy security concerns. This expansion aligns perfectly with those market fundamentals.

The reference to responding "rapidly to market growth signals" suggests the company may be structuring offtake agreements with flexible destination clauses, enhancing their ability to redirect cargoes to premium markets. This expansion solidifies Venture Global's emergence as a tier-one global LNG supplier capable of competing with established players like Cheniere and major international oil companies in the premium-margin LNG export business.

PLAQUEMINES PARISH, La.--(BUSINESS WIRE)-- Today, Venture Global (NYSE: VG) announced plans for a brownfield expansion at its Plaquemines LNG facility south of New Orleans, Louisiana. Joining Venture Global for the announcement was Secretary of Energy Chris Wright, Secretary of the Interior Doug Burgum, Louisiana Governor Jeff Landry and other federal, state and local officials and stakeholders. The planned Plaquemines expansion will consist of 24 trains and would represent an approximately $18 billion additional investment in the State of Louisiana, bringing Venture Global’s total investment in our current and planned US projects to over $75 billion.

Plaquemines LNG, approved during President Trump’s first term, is the newest LNG export facility to come online in the United States and is expected to produce approximately 27 million tonnes per annum (MTPA). Today, Venture Global is announcing that it will expand that capacity by over 18 MTPA, bringing the expected total production capacity to over 45 MTPA at Plaquemines.

“Our planned expansion of Plaquemines will make it the largest LNG export facility built in North America, supplying LNG to our allies while making a substantial impact on the U.S. balance of trade,” said Venture Global CEO Mike Sabel. “We believe this flexible incremental capacity will position us to respond rapidly to market growth signals. In a capital-intensive commodity industry, capital will always flow to the most competitive projects, and we believe that an expansion of Plaquemines is one of the most economically efficient opportunities available to quickly meet growing LNG demand. We are grateful for the Trump Administration’s commitment to building out our nation’s critical energy infrastructure. We believe this will be the best regulatory environment in decades.”

With this expansion, Plaquemines LNG will continue to support hundreds of new, permanent Louisiana jobs and tens of thousands of indirect subcontractor, part-time and full-time jobs throughout Louisiana and over 30 other states across the country. At peak construction, Plaquemines supports thousands of direct construction jobs. Venture Global expects a Final Investment Decision on the expansion to follow first production at CP2.

About Venture Global

Venture Global is a long-term, low-cost provider of U.S. LNG sourced from resource rich North American natural gas basins. Venture Global’s business includes assets across the LNG supply chain including LNG production, natural gas transport, shipping and regasification. Venture Global’s first facility, Calcasieu Pass, commenced producing LNG in January 2022. The company’s second facility, Plaquemines LNG, achieved first production of LNG in December 2024. The company is currently constructing and developing over 100 MTPA of nameplate production capacity to provide clean, affordable energy to the world. Venture Global is developing Carbon Capture and Sequestration projects at each of its LNG facilities.

Forward-looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this press release are forward-looking statements. Forward-looking statements include statements concerning the offering, Venture Global’s plans, objectives, goals, strategies, future events or performance, capital expenditures, financing needs, ability to fund operations, timelines for development and construction of its projects and commencement of operation at its projects, intentions relating to acquisitions, competitive strengths and weaknesses, and business strategy; and other information that is not historical information. Words such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “forecast”, “project”, “target”, “plan” or “aim” or terms of similar meaning are also generally intended to identify forward-looking statements. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements.

Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. Venture Global undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect actual outcomes, unless required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250306288977/en/

Investor Contact

Michael Pasquarello

IR@ventureglobalLNG.com

Media Contact

Shaylyn Hynes

press@ventureglobalLNG.com

Source: Venture Global Inc.

FAQ

How much will Venture Global's Plaquemines LNG expansion cost and what's the total investment?

The expansion requires an $18 billion additional investment, bringing Venture Global's total US project investments to over $75 billion.

What will be the total production capacity of VG's expanded Plaquemines LNG facility?

The facility's capacity will increase from 27 MTPA to over 45 MTPA, making it North America's largest LNG export facility.

How many jobs will the Plaquemines LNG expansion create?

The expansion will support hundreds of permanent Louisiana jobs and thousands of indirect jobs across 30+ states, with thousands of direct construction jobs during peak construction.

When will Venture Global make the Final Investment Decision for the Plaquemines expansion?

The Final Investment Decision is expected to follow first production at CP2.