LNG producer Venture Global raises Plaquemines project cost forecast by $2 B
Venture Global said it expects the project cost for its Plaquemines LNG plant in Louisiana to be around $2 B higher than its previous forecast due to inflation and other factors.
Shares of the company fell 19.2% to $11.50 in premarket trading.
The LNG producer expects the plant to now cost between $23.3 B and $23.8 B, compared to a previous range of $21 B–$22 B. As of December 31, the company had paid about $19.8 B.
Venture Global said costs to complete the project may increase further. The company added it has not accounted for recent tariffs by President Donald Trump's administration, which are expected to raise the cost of equipment to set up such plants.
Last month, U.S. federal regulators gave the company permission to increase the export capacity of the Plaquemines plant to 27.2 metric MMtpy from 24 metric MMtpy.
Venture Global, which became one of the most valuable U.S. LNG companies when it listed in January, also reported a 6.6% decline in fourth-quarter revenue to $1.52 B, hurt by 13% fall in volumes of LNG sold.
However, it posted a quarterly profit of $871 MM, compared to a loss of $50 MM a year ago, due to lower expenses.
Venture Global will also start the process of final investment decision for a second LNG plant with a liquefaction capacity of 20 metric MMtpy at its Calcasieu Pass facility in Louisiana, it said. It has already spent $4 B towards it as of December 31.
The company already has one LNG export facility at Calcasieu Pass, which is expected to export at least 10 metric MMtpy once complete.
The capacity expansions come at a time when Venture Global is locked in contract disputes with customers such as bp, Shell and and Edison over non-receipt of cargoes due to a lengthy testing and optimizing process.
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