On Tuesday, Chevron Corporation (NYSE:CVX) reportedly requested a say in Venture Global, Inc.'s (NYSE:VG) proposal to delay the startup deadline for its Plaquemines LNG export terminal in Louisiana.
This has escalated tensions between the developer and its long-term customers.
Project Details
The LNG liquefaction and export facility in Plaquemines Parish is situated around 20 miles south of New Orleans.
Plaquemines LNG had been under full construction since August 2021.
Post completion of both phases, Plaquemines LNG is expected to produce at least 20 million metric tons per year.
Notably, in February 2025, U.S. regulators had earlier cleared Venture Global to increase Plaquemines LNG's export capacity from 24 million to 27.2 million metric tons per year, a rise of roughly 13%, as per Reuters.
Back Story
Last month, Venture Global filed with the Federal Energy Regulatory Commission (FERC) to extend its in-service deadline from September 2026 to December 2027.
The company cited construction delays, supply-chain bottlenecks, and severe weather impacts.
At that time, the Federal Register allowed 15 days for comments or interventions, and it generally aims to decide within 45 days if contested.
Venture Global told Reuters that its FERC extension request for the Plaquemines project "has no impact" on the expected commercial operation dates for Phase 1 and Phase 2, which "remain unchanged."
Also, as per Reuters, Venture Global stated that "Chevron has a substantial interest that may be directly affected by the outcome of this proceeding,".
Chevron's Interest
In 2022, Venture Global had penned two 20-year Sales and Purchase Agreements totaling 2 million tonnes per annum (MTPA) of LNG.
Under the deals, Chevron bought 1 MTPA each from the Plaquemines LNG and CP2 LNG facilities.
Last week, Chevron announced that Suriname Exploration Limited, the operator of Block 5 with a 40% interest, is expected to begin drilling the Korikori-1 exploration well this month.
Investors can gain exposure to CVX stock via the EA Series Trust Strive U.S. Energy ETF (NYSE:DRLL) and SPDR Select Sector Fund – Energy Select Sector (NYSE:XLE).
CVX Price Action: Chevron shares were up 0.30% at $152.85 during premarket trading on Wednesday, according to Benzinga Pro data.
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