Venture Global LNG Inc. has been tasked with cooperating with long-term offakers of its Calcasieu Pass LNG project to share some private information about the Louisiana export terminal.
In a recent ruling, FERC appointed an administrative judge to manage negotiations between the liquefied natural gas exporter and a group of customers seeking information about the 10 million metric ton/year facility. If the parties cannot agree to a plan, the administrative judge could create their own protective order to release information to the customers.
“Because Venture Global and customers disagree about the terms of a protective agreement, the Commission finds that the most efficient way for the parties to reach an agreement is with the assistance of an administrative law judge,” Federal Energy Regulatory Commission staff wrote in the order.
The Commission designated the case to Judge Matthew Vlissides Jr. in Washington, D.C. Prehearing meetings are expected to begin next week, according to FERC.
The order was the latest in a months-long back and forth between Venture Global and its customers over the company’s request to FERC for an extension of its in-service schedule. In February, the Virginia-based company told regulators it needed more time to complete equipment repairs and commission Calcasieu Pass before it could officially enter commercial service, which would obligate it to fulfill shipments to contract holders.
The first commissioning cargo was loaded from the facility in early 2022, making it the fastest U.S. project to go from a final investment decision to first liquefaction. It has loaded hundreds of cargoes for uncontracted buyers on the spot market since. However, numerous issues with its equipment have been reported, mostly centered around its heat recovery steam generators for liquefaction blocks seven through nine.
In response, BP plc, China International United Petroleum & Chemicals Co. Ltd., Edison SpA LLC, Galp Energia SA, PKN Orlen SA, Repsol SA and Shell plc asked to intervene in the decision. FERC granted their requests, however, the group of customers claimed they could not properly comment on Venture Global’s request without more information about the commissioning process.
“In its request for an extension of time, Venture Global states that reliability issues with the heat recovery steam generators require the facilities to remain in the commissioning phase,” FERC staff wrote. “Numerous filings related to the heat recovery steam generators are filed as privileged, contradicting Venture Global’s claim that its extension of time request is not based on non-public information.”
Venture Global spokesperson Shaylyn Hynes told NGI that FERC’s decision was a “procedural order” that would ultimately allow the customers to receive information about the extensive repair process and comment on the company’s extension request.
“They will now have access to this information, including 124 weekly commissioning and site inspection reports, that document the significant issues impacting this critical power plant equipment,” Hynes said. “FERC has no interest in any outstanding commercial disputes between Venture Global and its customers, which are unrelated to this routine extension request.”
Along with challenges to FERC filings, several of Venture Global’s customers have confirmed they are involved in arbitration with the company over the terms of their contracts and the extended commissioning process.
A BP spokesperson told NGI the company welcomed FERC’s order, “which is an important step towards creating greater transparency. We remain confident in our position and will continue to pursue it in arbitration.”
