July 8 (Reuters) – U.S.-based LNG producer Venture Global said on Wednesday average liquefaction fees jumped 69% in the second quarter from the previous three months, benefiting from higher global LNG prices after the Iran war disrupted supplies through the Strait of Hormuz.
The U.S. liquefied natural gas exporter realized an implied weighted average fixed liquefaction fee of $6.45 per million British thermal units (MMBtu) in the quarter ended June 30, up from $3.82 per MMBtu in the first quarter, according to a regulatory filing.
The Iran war disrupted global LNG supplies, as damage to Qatar’s liquefaction facilities curtailed exports, sending LNG prices sharply higher.
Venture Global’s implied weighted average liquefaction fee reflects a blend of higher prices the company received for commissioning cargoes sold on the spot market and under short-term contracts, as well as lower-priced volumes sold under long-term agreements.
Liquefaction fees are a key earnings component for U.S. LNG plants, which typically charge fixed fees under long-term contracts, with the ability to adjust pricing based on global LNG market conditions.
The company sold and recognized revenue on 466.4 TBtu of LNG during the second quarter, down slightly from 480.8 TBtu in the previous quarter.
Calcasieu Pass exported 37 cargoes, down from 38 in the previous quarter, while Plaquemines exported 90 cargoes, compared with 92.
(Reporting by Dharna Bafna in Bengaluru; Editing by Maju Samuel)
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