Shell Challenges Venture Global Arbitration Loss in NY Court
Venture Global’s Calcasieu Pass (CP) LNG export facility in Louisiana began operations in March 2022 (see Calcasieu Pass LNG Loads Inaugural Cargo; Sabine Pass LNG Expands). Typically, a new LNG facility will load and ship several (maybe two or three) cargoes to “work out the kinks” and ensure everything is working as advertised. Venture Global, using loopholes in its signed contracts, maintained that they were working out the kinks long after it began shipping. After hundreds of cargoes were shipped, CP’s customers were still not receiving their contracted (at lower prices) shipments. Shell, along with several other customers, sued (see Shell, Edison, BP File for Arbitration Against Venture Global LNG). Shell lost its arbitration case, but two months later, BP won its arbitration case. Shell is now appealing the rejected case. Read More “Shell Challenges Venture Global Arbitration Loss in NY Court”
In April, we told you that Energy Transfer’s (ET) Lake Charles LNG project had landed a new partner to help pay for the project, MidOcean Energy, which will cover 30% of the cost of building the plant (see 
The mystery may have been solved by MDN… In September 2022, the Delaware River Basin Commission (DRBC) voted to extend a permit to build a special LNG export dock along the shoreline of the Delaware River in New Jersey by an extra three years (see 
Yesterday, the Pennsylvania House Environmental and Natural Resource Protection Committee (the House has a one-Democrat majority) held a hearing on a proposal by Penn America to locate a 1 Bcf/d (billion cubic feet a day) LNG natural gas export facility in the City of Chester, Delaware County. The hearing was hosted by Rep. Carol Kazeeme (D-Delaware) and was exclusively attended by Democrats who were there to bash the project. There was no “How can we make this better?” There was only, “No way, no how, go to hell.” That’s the new Democrat Party and its political “leaders.” 
The NYMEX futures price for natural gas was a rocket ship over the past two weeks. The NYMEX price closed at $4.1240/MMBtu on Friday, breaking the $4 barrier barely a month after we struggled to break the $3 barrier. In October, the NYMEX front-month contract rose an astounding 82.10 cents per MMBtu, or 25%. In one month! October was the largest one-month gain since August 2022, and the largest one-month percentage gain since February 2025. Zooming out a bit, the NYMEX price was up $1.127 or 38% over the last two months. However, spot prices (at least in the Marcellus/Utica) are more of a mixed bag. 
LNG exports continue to be an exceptional (and very hungry) customer for domestic U.S. natural gas. Over the past week, feedgas flowing to LNG facilities set a new all-time high record. We achieved a new record of 17.4 Bcf/d (billion cubic feet per day) of feedgas for LNG last Sunday, surpassing the previous record set the day before at 17.3 Bcf/d. Another record, the monthly average, is also set to fall. April 2025 is the current reigning champ for average LNG feedgas use at 16.0 Bcf/d. October is on track to surpass it, averaging 16.6 Bcf/d as of October 27 (with just a few days left in the month). 
U.S. Senator Ted Cruz (R-Texas), along with Senators Kevin Cramer (R-N.D.) and Shelley Moore Capito (R-W. Va.), introduced the Natural Gas Export Expansion Act to significantly streamline the federal approval process for exporting liquefied natural gas (LNG). The legislation aims to expedite non-free trade agreement (FTA) export permits by treating them the same as FTA countries, ensuring faster approval. According to Senator Cruz, the bill will enhance American energy dominance, create jobs, and drive investment by ensuring Texas-produced gas can be sent to allies globally. 
For over 30 years, the Henry Hub in Louisiana has served as the key anchor for natural gas pricing in the contiguous United States. Its role, however, has dramatically evolved over the last decade, primarily due to the rapid growth of U.S. LNG exports. Henry Hub has shifted from being a benchmark for U.S. natural gas to the primary index for global LNG cargo pricing. Consequently, the volume of physical gas exchanged at the hub is at its highest, and Henry Hub prices are now considered a premium compared to other domestic markets. 
Williams engaged in some LNG jiu-jitsu yesterday, announcing several transactions related to LNG exports. It’s somewhat complicated, but we’ll break it down. First, Williams sold its interest in the Haynesville’s South Mansfield upstream (drilling) venture to JERA, Japan’s top power generator, for $398 million. Williams will continue to operate the gathering system for the South Mansfield wells. Second, Williams is buying 80% (becoming the operator) of the Driftwood Pipeline LLC, which includes the construction of Line 200, a fully permitted greenfield pipeline connecting Woodside’s Louisiana LNG facility to multiple pipelines, including Transco and Louisiana Energy Gateway (LEG). Third, Williams is buying a 10% stake in the Louisiana LNG export facility. Williams will pay $378 million for the Driftwood Pipeline and the 10% stake in Louisiana LNG. However, Williams will contribute another $1.9 billion for its share of capital expenditures for the LNG facility and pipeline. Williams’ total investment will be roughly $2.3 billion. And yes, there is a connection to the Marcellus/Utica. 
Venture Global is building a new LNG export facility in Plaquemines Parish, Louisiana, approximately 20 miles south of New Orleans. When fully complete, Plaquemines LNG’s nominal capacity will be 2.6 Bcf/d (3.2 Bcf/d peak). The first portion of the new plant came online in December when it officially shipped its first cargo to Germany. Venture Global said that it would (as it did with the Calcasieu Pass facility it previously built) pretend that Plaquemines LNG is not “commercially ready” while shipping all sorts of LNG cargoes around the world. The practice allows the company to cream the market and make more money for the first couple of years (see 
The front-month NYMEX natural gas futures price soared yesterday (the biggest one-day increase in more than three months), closing up +0.389 (+12.93%) at $3.397/MMBtu. Why? In a word, weather. The price jumped based on forecasts for much colder weather and higher heating demand over the next two weeks than previously expected. Also playing a role is a decline in natural gas output this month and near-record flows of gas to LNG export plants. LSEG (London Stock Exchange Group) said average gas output in the Lower 48 states fell to 106.6 billion cubic feet per day (Bcf/d) so far in October, down from 107.4 Bcf/d in September and a record monthly high of 108.0 Bcf/d in August. 
Venture Global’s Calcasieu Pass (CP) LNG export facility in Louisiana began operations in March 2022 (see 
Each fall, typically in September/October, Cove Point LNG (along the shore of Maryland) shuts down for a few weeks for annual maintenance. According to a notice posted on the Berkshire Hathaway Energy Informational Postings website, reductions in flows to the Cove Point facility would happen between Monday, September 15, and Friday, October 10 (see