Long-term offtakers of Venture Global LNG Inc.’s Calcasieu Pass terminal in Louisiana are again pressing FERC to make the export project developer provide information about the facility, this time targeting a request to extend the commissioning process.
Earlier this month, Venture asked the Federal Energy Regulatory Commission to extend the deadline for its 10 million metric tons/year (mmty) liquefied natural gas terminal to reach full operations by a year. 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. 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, five of the long-term contract holders, including BP plc, Edison SpA, Galp Energia SA, Repsol SA and Shell plc, filed requests to FERC asking to intervene in the extension decision and provide information on the project’s status.
Venture’s “response to Shell LNG’s comments in this proceeding confirm that the company cannot be relied upon to provide the complete picture of what is happening at the facility,” Shell wrote in its response.
Last March, Venture informed FERC that equipment supplier General Electric Co. would conduct an investigation of issues with the generators, which could lead to extensive repairs. It updated the Commission last month, reporting it expected commissioning activities to continue for several more months.
Contract holders including BP and Shell have continually accused the company of hiding behind alleged technical issues to delay sending contracted cargoes in favor of selling spot volumes. In its latest response, Shell accused Venture of “cherry picking” contract information it disclosed in public filings to justify taking “its purported ‘commissioning’ process far beyond the bounds of what is normal in the LNG industry.”
Since commissioning began, more than 17 mmt, or around 1.4 Bcf, in spot cargoes have left the facility, according to data from Kpler. Most of those volumes have landed in Europe.
On Monday, Venture submitted a public filing to FERC acknowledging it was aware its contract holders were seeking to intervene and that it was preparing a full response. It also officially raised an objection to requests from Galp and Repsol to release information “to make clear that Calcasieu Pass will not provide any such documents unless and until explicitly ordered to do so by the Commission.”
