Investors may have a new way to gain exposure to rising U.S. LNG exports.
Venture Global last month reached first LNG production at the company’s second facility, Plaquemines LNG. It will be among the largest facilities in the world, once fully operational, according to a statement from the company.
Plaquemines will produce and export LNG while construction and commissioning continues for the remaining of the project’s 36 trains and associated facilities, creating additional U.S. LNG supply faster than any other new suppliers of LNG, according to the statement.
Plaquemines LNG reached a Final Investment Decision (FID) on Phase One in May 2022 and Phase Two in March 2023. For a 20 MTPA nameplate capacity project, reaching first LNG production 30 months from its FID makes Plaquemines LNG one of the two fastest greenfield projects to reach first production.
The other fastest greenfield project to reach first production is Venture Global’s first facility, Calcasieu Pass, which began producing LNG in January 2022.
Investment Opportunities as New LNG Export Capacity Comes Online
In the meantime, investors can get exposure to liquefaction names with the Alerian Energy Infrastructure ETF (ENFR ). 5.7% of ENFR by weight as of January 8 is in liquefaction, represented by Cheniere (LNG) and NextDecade (NEXT).
ENFR provides exposure to the Alerian Midstream Energy Select Index (AMEI). The index is a composite of North American energy infrastructure companies, including C-corps and MLPs. Midstream companies transport, process, and store hydrocarbons, a crucial role that generates predictable fee-based revenue.
In addition to liquefaction, ENFR provides exposure to four other midstream sectors: pipeline transportation of natural gas, pipeline transportation of petroleum, gathering and processing, and storage.
See more: Under the Hood of ENFR’s Sector Breakdown
To learn more about the 2025 midstream outlook, please join us Wednesday, January 15, at 1 p.m. EST for our webcast, “After a Strong 2024, Do MLPs/Midstream Have More in the Tank?” Register here.
For more news, information, and analysis, visit the Energy Infrastructure Channel.
VettaFi LLC (“VettaFi”) is the index provider for ENFR, for which it receives an index licensing fee. However, ENFR is not issued, sponsored, endorsed or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing or trading of ENFR.
