Venture Global Reports 69% Increase in Q2 Liquefaction Fees

U.S. liquefied natural gas producer Venture Global announced on Wednesday that its average liquefaction fees increased by 69% in the second quarter compared to the previous quarter. According to a regulatory filing, the company's implied weighted average fixed liquefaction fee was $6.45 per million British thermal units (MMBtu) for the quarter ending June 30, up from $3.82 per MMBtu in the first quarter.

The company benefited from higher global LNG prices, which were reportedly driven by supply disruptions through the Strait of Hormuz following the Iran war. The conflict was said to have curtailed exports after causing damage to liquefaction facilities in Qatar, leading to a sharp rise in LNG prices.

Venture Global's reported liquefaction fee represents a blended average. It combines higher prices from commissioning cargoes sold on the spot market and through short-term contracts with lower-priced volumes sold under long-term agreements. These fees are a significant component of earnings for U.S. LNG facilities, which often have pricing structures that can be adjusted based on global market conditions.

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During the second quarter, the company sold and recognized revenue on 466.4 trillion British thermal units (TBtu) of LNG, a slight decrease from the 480.8 TBtu sold in the first quarter. The Calcasieu Pass facility exported 37 cargoes, down from 38 in the prior quarter, while the Plaquemines facility exported 90 cargoes, compared with 92.