Venture Global’s LNG fees jump 69% amid Iran war

Venture Global ↗ 0.36%, the U.S. liquefied natural gas producer, said on Wednesday that its average liquefaction fees surged 69% in the second quarter as the Iran war continued to disrupt global LNG supply through the Strait of Hormuz.reuters+1

The company realized an implied weighted average fixed liquefaction fee of $6.45 per million British thermal units for the quarter ended June 30, up from $3.82 per MMBtu in the first quarter, according to a regulatory filing with the Securities and Exchange Commission. Venture Global exported 127 cargoes from its Calcasieu Pass and Plaquemines LNG facilities during the period, selling 466.4 trillion British thermal units of LNG.sec+2

War Fallout Reshapes Global LNG Trade

The fee increase reflects the broader disruption to global energy markets caused by the conflict in the Middle East. Iranian attacks earlier this year halted Qatari LNG production, removing an estimated 80 million tonnes per annum — roughly 19% of global supply — from the market, according to Wood Mackenzie. The suspension has forced Asian and European buyers to compete for alternative supplies, particularly from U.S. exporters.lloydslist

QatarEnergy has extended force majeure declarations on deliveries, most recently withholding four additional cargoes scheduled for Italy's Adriatic LNG terminal until early September, bringing the total affected cargoes to 21, according to CNBC, citing a statement from Italian utility Edison. QatarEnergy has also halved its 2026 scheduled deliveries to Bangladesh, Reuters Thomson Reuters Corporation ↘ 1.10% reported.reuters+1

Tight Market Expected Through Summer

Asian LNG benchmark prices remain elevated. The JKM August futures contract stood at $15.52 per MMBtu as of late June, compared with a pre-war level of $10.70 in late February. Shell ↗ 0.21% warned in its annual LNG outlook that global trade could remain flat in 2026 if Hormuz disruptions persist through the summer.reuters+1

Analysts expect Qatari flows to normalize by September under a 60-day ceasefire agreement between the U.S. and Iran, though market participants caution that infrastructure damage may keep prices above pre-war levels even after shipping resumes. The International Energy Agency projects full reopening of the strait by September, just ahead of Europe's critical winter restocking season.cnbc+1

Venture Global said it assumes a fixed liquefaction fee range of $9.50 to $10.50 per MMBtu for its remaining unsold cargoes in 2026, suggesting the company expects pricing to remain elevated through the second half of the year.investors.ventureglobal