Venture Global said it will launch “commercial operations” for the Calcasieu Pass liquefied natural gas (LNG) export project in Louisiana in April.
The facility in Cameron Parish already began production January 2022, according to Venture Global. However, Calcasieu Pass LNG has not supplied offtakers, prompting BP PLC to complain to the Federal Energy Regulatory Commission (FERC) in 2023.
The Arlington, Virginia-based company “notified its long-term customers that its Calcasieu Pass facility will commence commercial operations on April 15, 2025”, Venture Global said in an online statement.
“The facility will achieve its commercial operation date, or COD, in under 68 months from its August 2019 final investment decision, despite substantial impacts including two hurricanes, the COVID-19 pandemic, and major unforeseen manufacturing issues, such as with the Heat Recovery Steam Generators forming part of the facility’s power island”.
The 432-acre Calcasieu Pass LNG sits on the Calcasieu Ship Channel at the mouth of the Gulf of Mexico. The facility provides deepwater access, proximity to gas supplies and ease of transport, according to Venture Global.
Venture Global previously secured authorizations to export a cumulative 620 billion cubic feet (Bcf) a year, or 12 million metric tons per annum (MMtpa), of LNG to FTA and non-FTA countries. It later applied to increase the limit to 640.666 Bcf per year or 12.4 MMtpa. The Energy Department granted the increase for the portion of nations with a free-trade agreement (FTA) with the U.S. on April 22, 2022, while a decision on the non-FTA increase is pending.
On December 11, 2023, BP complained to FERC saying Venture Global had shipped over 200 cargoes from Calcasieu Pass LNG over the past year and a half at a time of high prices. All the while, Venture Global did not deliver volumes owed to long-term customers that made the project financially viable, BP said.
“VGCP has avoided providing service to its offtake customers, whose long-term commitments provided the financial support necessary for the project, merely by refusing to declare that the facility is operating commercially”, stated the complaint, published on FERC’s website.
“Apparently spying an opportunity for selfdealing in the current high LNG spot price climate, VGCP [Venture Global Calcasieu Pass LLC] has unilaterally decided to defer providing service to its customers at the Export Terminal indefinitely.
“Instead, VGCP is ignoring its commitments to its offtake customers simply by taking the never-before-seen position that the facility is both operating commercially and commissioning at the same time, so only the commissioning regulations need apply”.
On January 2, 2024, Shell PLC, another offtaker, filed comments before FERC in support of BP’s claims.
On Wednesday, a Los Angeles law firm announced a class suit against Venture Global. The suit accuses Venture Global of misleading investors in its initial public offering and cites BP and Shell’s claims.
“According to the Complaint, the Company made false and misleading statements to the market”, Schall Law Firm said in an online statement. “Venture Global’s ongoing ability to deliver LNG globally and the development of its natural gas projects was dependent on customer contracts. The Company faced legal challenges from major customers including BP and Shell based on delays in supply contracts.
“Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Venture Global, investors suffered damages”.