FIRST LNG CARGO SHIPS FROM THE US TO EUROPE

The U.S.’s eighth liquefied natural gas plant began exporting this week, marking the departure of an LNG ship to Europe.

This strengthens the U.S.’s position as the world’s largest LNG exporter and provides a leg up for President-elect Donald Trump, who is calling on Europe to increase purchases of U.S. energy during his upcoming second term.

Venture Global, one of the U.S.’s largest LNG developers, has shipped the first cargo of LNG from its Plaquemines export facility in Louisiana on a company-owned vessel called Venture Bayou.

The newly built vessel is on its way to deliver the first cargo of LNG from German utility EnBW’s Plaquemines plant, according to Bloomberg. The cargo is expected to arrive in early January.

A statement from Venture Global cited by Bloomberg said Plaquemines “will produce and export LNG while construction and commissioning of the project’s remaining 36 trains and associated facilities continues.”

Plaquemines has several long-term customers, including European company Electricite de France SA, Polish energy company Orlen SA, Chinese companies Sinopec and Cnooc Ltd., and Shell Plc.

When the Plaquemines LNG plant is fully operational, expected in late 2025 or early 2026, according to Venture Global’s project schedule, it will be among the world’s largest LNG export facilities, further strengthening the United States’ position as the world’s leading LNG exporter. The development is critical because American LNG has been offered to Brussels as a replacement for Russia’s NatGas pipeline.

Venture Global CEO Mike Sable wrote in a statement: “In just five years, Venture Global has built, produced and exported two large-scale LNG projects, something never seen before in the history of the industry.”

A potential boom in LNG exports could please President-elect Trump, who recently threatened Europe with tariffs if it does not increase purchases of U.S. energy next year.

Additionally, Venture Global has filed for an initial public offering, with analysts at JPMorgan estimating the company’s value at around $100 billion.

In response to Trump’s comments on U.S.-EU LNG trade, Goldman analysts said U.S. LNG could “theoretically” replace Russian natural gas supplied to the EU via pipelines.