BP, Edison, Shell ask US, EU to intervene in Venture Global LNG dispute

BP, Edison, Shell ask US, EU to intervene in Venture Global LNG dispute

BP, Edison, and Shell have urged a U.S.-EU energy group to intervene in a dispute with Venture Global LNG over the U.S. firm’s failure to deliver contract supplies of liquefied natural gas (LNG). The companies have appealed to the U.S.-EU Task Force on Energy Security, with Shell executive calling for Venture Global LNG to fulfill their signed contracts. At least four customers, including BP, Edison, and Shell, are pursuing contract arbitration claims against Venture Global LNG due to a lack of gas supplies. Venture Global LNG has cited faulty power equipment as the reason for the Louisiana plant not being fully operational.

The appeals made by BP, Edison, and Shell aim to pressure Venture Global LNG on the contracts. Shell has accused the company of prioritizing the construction of a second LNG export plant over completing repairs to its first plant, which has damaged confidence in American LNG suppliers. The EU and U.S. officials view the dispute as a contractual matter between commercial parties, according to a Venture Global LNG spokesperson. Shell does not expect an immediate reaction from the task force but wants to highlight the potential loss of trust in U.S. LNG. BP and Edison have not provided comments on the matter.

Venture Global LNG has stated that the Calcasieu Pass plant is operating at full capacity and has sold over 200 cargoes worth approximately $18.2 billion. However, Shell and other customers claim that the company has profited from the global gas market rally while compromising Europe’s energy security. They have been informed that they will not receive their contracted amounts until late 2024. BP and Shell have purchased gas from the plant and sold it outside of Europe, raising concerns about Europe’s energy security.

Venture Global LNG has acknowledged that Shell has purchased seven commissioning cargoes, three of which were traded outside of Europe for higher profits. Similarly, BP has purchased six commissioning cargoes, two of which have been traded to destinations outside of Europe. Repsol has also sought to reopen the approval of the Calcasieu plant due to startup problems, but the request was rejected by the U.S. energy regulator.

In conclusion, BP, Edison, and Shell are seeking intervention from the U.S.-EU Task Force on Energy Security in their dispute with Venture Global LNG over the failure to deliver contract supplies of LNG. The companies are concerned about the lack of gas supplies and the impact on Europe’s energy security. Venture Global LNG has cited faulty power equipment as the reason for the plant’s operational issues. The dispute is viewed as a contractual matter, and no immediate action has been taken.

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Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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