Venture Global Moves Forward With Plaquemines LNG Expansion Project

Venture Global Inc. VG, a U.S.-based liquefied natural gas (LNG) company, stated that it has taken a major step toward the expansion of its Plaquemines LNG project. The LNG firm has submitted an application for the approval of the brownfield expansion of Plaquemines LNG with the Federal Energy Regulatory Commission. Furthermore, the company has filed for export authorizations associated with Plaquemines LNG expansion with the U.S. Department of Energy.

VG announced the Plaquemines expansion project earlier this year. Since the announcement, Venture Global has raised the production targets for this project by almost 40% compared to its initial estimates. The growing global demand for LNG has been a significant factor influencing the Plaquemines LNG brownfield expansion project. Additionally, the continued enhancements in the efficiency of its modular liquefaction trains are expected to contribute to the rise in expected production.

The bolt-on expansion will be carried out in three phases, incorporating 32 modular liquefaction trains. This is cumulatively expected to add more than 30 million tons per annum (MTPA) of production capacity at its peak. The Plaquemines complex previously had an approved peak production capacity of 28 MTPA, which shall increase to more than 58 MTPA.

Per Venture Global’s statement, the previously stated timelines regarding the start of commercial operations for Phase I and Phase II of the Plaquemines facility will remain unchanged. The expansion of the Plaquemines LNG complex will enable VG to meet the strong demand for LNG. The company believes that executing the expansion project in phases is the most logical and cost-effective way to build on its existing infrastructure. This phased approach also provides the LNG firm with the flexibility to scale the project in line with evolving market needs.

VG’s Zacks Rank and Key Picks

VG currently has a Zacks Rank #4 (Sell).

Some top-ranked stocks from the energy sector are Oceaneering International OII, Canadian Natural Resources Ltd. CNQ and FuelCell Energy FCEL. While Oceaneering and Canadian Natural Resources currently sport a Zacks Rank #1 (Strong Buy) each, FuelCell carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. It has delivered 25 consecutive years of dividend increases, one of the longest streaks among global oil producers.

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research