BP’s First LNG Shipment from Calcasieu Pass Marks a New Era in Louisiana’s Energy Landscape

Apr 17, 2025

By The Bayou Insider Staff

In a major milestone for Louisiana’s booming energy sector, BP has officially commenced its first shipment of liquefied natural gas (LNG) from the Calcasieu Pass facility in Cameron Parish. The cargo, loaded aboard the British Mentor, marks the beginning of long-term contractual deliveries from Venture Global’s cutting-edge export terminal—positioning Louisiana once again at the forefront of the global energy economy.

A New Chapter in LNG Exports

The Calcasieu Pass terminal, developed by Venture Global LNG, has finally entered full commercial operation after an extended commissioning phase that spanned more than two years. Though initial LNG production began in early 2022, official commercial operations were only declared on April 15, 2025.

This delay in transition from testing to full operation sparked months of tension and even arbitration between Venture Global and several of its major clients—including BP and Shell—who accused the company of intentionally postponing the start of contract shipments to capitalize on sky-high spot market prices.

Now, with the first contracted cargo shipped, BP is moving forward with its 20-year agreement to receive 2 million metric tons of LNG annually from Calcasieu Pass.

“We are proud to commence our long-term deliveries from this important facility,” a BP spokesperson said. “This will enhance our ability to provide reliable, low-emissions energy to customers worldwide.”

The Calcasieu Pass Facility: Built for the Future

Located near the Gulf of Mexico at the intersection of the Calcasieu Ship Channel, the Calcasieu Pass terminal represents a modern approach to LNG infrastructure. Its 12.4 million metric tons per annum (mtpa) production capacity is achieved through a modular setup—18 mid-scale liquefaction trains installed in a record time frame compared to traditional megaprojects.

The project has brought thousands of jobs to Southwest Louisiana and is credited with helping revitalize the Cameron Parish economy after multiple hurricanes and industry slowdowns.

But it hasn’t been without controversy.

Commissioning Delays and Arbitration Battles

Though the terminal had been producing LNG since January 2022, Venture Global repeatedly cited hurricanes, power issues, and COVID-19-related setbacks as reasons for delaying commercial deliveries.

Buyers like BP and Shell, who had pre-purchased liquefaction rights, argued that the delays were strategic. During the commissioning period, Venture Global reportedly earned billions by selling LNG at high spot prices—without delivering under the lower-rate, long-term contracts. Arbitration is still ongoing.

Nonetheless, with official commercial status now granted, those contracts are expected to proceed as planned.

Economic Boost for Louisiana

For Louisiana, this development is nothing short of a win. The energy sector continues to be a cornerstone of the state’s economy, and the full operation of Calcasieu Pass reaffirms the state’s position as a global LNG leader.

Louisiana is home to four of the country’s major LNG terminals, with more on the way. Venture Global is also developing the Plaquemines LNG terminal in Plaquemines Parish and has proposed the CP2 LNG project, which would further increase the state’s export capacity.

“This first shipment symbolizes not only a new era for BP and Venture Global, but for Louisiana’s continued leadership in energy production,” said a state economic development official.

Global Implications

BP’s LNG portfolio spans the globe, and this new Louisiana-based supply strengthens its ability to meet demand in Europe, Asia, and other regions grappling with energy insecurity. As geopolitical tensions continue to challenge energy supply chains, U.S.-based LNG—especially from Gulf Coast terminals—is becoming increasingly vital to stabilizing the global market.

What’s Next

As commercial operations now begin in earnest, all eyes will remain on the performance of Calcasieu Pass and Venture Global’s future projects. For BP and Louisiana, this first shipment represents far more than just a fuel delivery—it signals momentum, investment, and a renewed commitment to energy leadership.