Key Highlights

  • Shares are trading down 11.77% at $13.05 versus a prior close of $14.79.
  • Phase One reached commercial operations just over 53 months after the Investment decision.
  • Crude fell 6% to 8% and European gas nearly 9% on diplomatic hopes.

Venture Global (NYSE:VG) shares are trading down 11.77% at $13.05 even though the company declared commercial operations at Phase One of its Plaquemines LNG export project. The stock is down from a prior close of $14.79, with a 52-week range of $5.72 to $17.62 after a gain of roughly 110% so far this year.

Venture Global is an Arlington, Virginia-based producer and exporter of U.S. liquefied Natural Gas with more than 100 million tonnes a year of capacity in production, construction or development. Its Louisiana projects include Calcasieu Pass, Plaquemines and CP2.

Phase One of Plaquemines Reaches Commercial Operations

Commercial operations began on October 31, just over 53 months after the final investment decision, which the company said makes the project among the fastest greenfield LNG builds completed. The first cargo after the commercial operations date departed today and was lifted by a long-term customer under a sales and purchase agreement.

Management said the low-cost volumes will act as a stabilizing force as the global LNG market endures an extended period of volatility.

Energy Sell-Off and a Shift to Contracted Sales Weigh on Sentiment

Energy shares came under pressure as hopes for U.S.-Iran diplomacy pushed crude down 6% to 8% and European gas down nearly 9%. Market data also points to the move from spot sales to long-term contracts, priced below recent global benchmarks of roughly $32 to $34 per million British thermal units, as a drag on sentiment after the year-to-date run.

Third-Quarter Results on November 10 Next in Focus

Venture Global is due to report third-quarter results on November 10. Wells Fargo has a $21 price target on the stock and the consensus target sits near $16.50, both above where the shares are trading today.