Shell backs BP in fight over Venture Global LNG exports
Reuters
Published Jan 03, 2024 20:57
Updated Jan 03, 2024 22:16
By Curtis Williams
HOUSTON (Reuters) - Shell PLC (LON:SHEL) has joined BP (LON:BP) PLC in its battle against Venture Global LNG, accusing the liquefied natural gas (LNG) producer of denying it and other customers access to supplies while exporting more than $18 billion worth of the superchilled gas, according to a filing with U.S. regulators.
Venture Global's Calcasieu Pass export facility has been producing and selling LNG for more than 20 months while telling Shell (LON:RDSa), BP and others it cannot provide them with term-contract cargoes while the plant is undergoing a commissioning phase. The customers have complained that this lack of access has cost them billions of dollars in lost sales.
Shell filed a letter on Tuesday to the Federal Energy Regulatory Commission (FERC) in support of BP. The letter called on the U.S. regulator to force Venture Global LNG to release plant commissioning data to determine why commercial operations are stalled.
The two energy giants are among a group that includes Edison SpA, Polish state energy firm Orlen and Spain's Repsol (BME:REP) that have filed contract arbitration claims on the lack of LNG cargoes provided under their contracts.
"Venture Global's unprecedented and inexplicable process for purported commissioning that has so far been shielded from public view fails to follow Commission regulations regarding requests for privileged treatment of documents," Shell said.
The letter reflects both the weak legal position that the two energy giants hold, a Venture Global LNG spokesperson said, and their efforts to pull regulators in the U.S. and Europe in a contract dispute.
"This unseemly behavior reflects BP and Shell’s increasing lack of confidence in their contractual positions, and their complete disrespect for the U.S. regulatory process," said spokesperson Shaylyn Hynes.
Shell wants an order for blanket disclosure of privileged documents, or an acceptable level of unilateral redaction of documents, the FERC filing shows.
Venture Global LNG has become a major U.S. exporter of the superchilled gas since it started processing at its Calcasieu Pass, Louisiana, plant early in 2022. It has sold more than 200 cargoes of the gas under its own accounts without supplying BP and other long-term contract customers.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.