BP says Venture Global does not need more time to launch an LNG plant

US LNG developer Venture Global does not need additional time to start production at its Calcasieu Pass LNG facility, its client BP has told US regulators.

The UK energy supermajor, along with Shell, Repsol, Eni and Edison, became core buyers of LNG from Venture Global even before it started producing. They paid for the construction of the Calcasieu Pass facility and secured their long-term supply from it.

The facility began production in early 2022 – just in time for Europe, which was starting to face a shortage. But instead of honoring its contracts with European buyers, Venture Global chose to sell more LNG on the spot market.

Venture Global delayed deliveries to these customers while selling LNG on the spot market, making billions. Regarding the delay in deliveries to long-term customers, Venture Global explained it force majeure due to technical problems with the power supply. As they learned that these problems did not prevent the company from producing enough LNG to sell on the spot market, European buyers were a little upset.

Late last year, BP asked FERC to force Venture Global to disclose the force majeure documentation, which Venture Global wants to keep confidential.

Earlier this year, FERC ordered Venture Global LNG to provide its clients with documents about the mechanical problems and start-up of the Calcasieu Pass LNG.

Now, BP, after reviewing the documents, told the regulator, as reported by Reuters, that it “reiterates its position that no extension is necessary” for Venture Global to officially launch the start-up.

Meanwhile, Venture Global is trying to boost its sales of the super-cooled fuel and earlier this year bought nine new LNG vessels that are currently under construction in South Korea and will be delivered starting later this year.

“We are sending a strong signal to the global market about our long-term commitment to meeting the world’s growing energy demand at scale, strengthening the security of our customers and allies by providing them with clean, affordable and reliable LNG as efficiently as possible possible,” Venture Global CEO Mike Sabel said in March.

By Tsvetana Paraskova for Oilprice.com

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