Venture Global LNG Inc. told regulators Calcasieu Pass LNG has yet to meet requirements to begin fulfilling deliveries to contract holders, pushing back against efforts from its long-term offtakers to force disclosure around the years-long commissioning process.
In December, BP plc filed a request with FERC requesting it compel Virginia-based Venture Global to release confidential information about the extended commissioning process at Calcasieu Pass. BP and other long-term offtakers of the project, including Edison SpA, Galp Energia SA, Shell plc and Repsol SA, have accused the company of hiding behind alleged technical issues to delay sending contracted cargoes in favor of selling its own spot volumes.
Shell and, mostly recently, Portugal’s Galp have asked the Federal Energy Regulatory Commission to join the formal complaint, prompting Venture Global to accuse the companies of purposefully ignoring the stipulations of their contracts to disparage the company in a public forum.
“As it had to do in responding to BP’s complaint, Calcasieu Pass must once again reveal confidential contractual details to demonstrate that it is honoring its obligations as established in clear, unambiguous, and unequivocal contractual language,” representatives for the company wrote.
In its answer to FERC, Venture Global included language from its contracts tying the terminal's commercial operation date to the full completion of “all the facilities” at the southwestern Louisiana project.
“Most notably, and as detailed at length in the answer, not all of the project’s facilities have been completed and commissioned as a result of the continuing need for further commissioning, repair, rectification and completion of certain facilities.”
Venture Global’s 10 million metric tons/year (mmty) Calcasieu Pass terminal loaded its first commissioning cargo in early 2022. So far, more than 16 MMt in commissioning cargoes have left Calcasieu Pass LNG for delivery to spot buyers, according to data from Kpler. Most of those cargoes have landed in Europe.
Venture Global has reported numerous issues with its equipment. Most of the ongoing issues the company said still needed to be resolved have centered around the heat recovery steam generators for liquefaction blocks seven through nine.Venture Global was cited by Louisiana environmental regulators last year over unauthorized air emissions from the facility during multiple system failures.
