BP plc has asked U.S. regulators to force Venture Global LNG Inc. to release confidential documents related to the extended commissioning process of the Calcasieu Pass export terminal, arguing that Venture Global has failed to meet FERC disclosure rules for the delayed start-up of commercial operations.
BP’s filing to the Federal Energy Regulatory Commission on Monday is the latest escalation in an increasingly public dispute over Venture Global’s 10 million metric tons/year (mmty) Calcasieu Pass terminal, which loaded its first commissioning cargo early last year.
BP contracted for 2 mmty of its capacity, but Venture Global has yet to declare the facility complete and commercially operable, a status that would require it to begin supplying cargoes under its long-term contracts. BP and other offtakers accuse the company of purposely delaying the start of commercial operations so that it could profit from the sale of spot liquefied natural gas cargoes during the commissioning.
The delays have coincided with Russia’s invasion of Ukraine and skyrocketing prices for LNG, BP said, citing data that show Venture Global sold more than 200 spot cargoes and made over $18 billion. Venture Global has cited the need to fix leaks and reliability problems, even while it runs the terminal at or above capacity, BP said.
Venture Global “claims are disingenuous and are not credible,” BP argued. The company has kept “a veil of secrecy around its operations” and “seemingly intentionally obfuscated the nature of” work to resolve reliability issues with the terminal, BP said. Venture Global “has immunized its self-serving assertion that commercial operations must be deferred” by failing to meet FERC disclosure requirements, BP said.
“Effective oversight of U.S. LNG export facilities depends on meaningful transparency, including public disclosure of key facts and documents necessary to ensure FERC’s rules are being followed,” BP said in a statement. “Venture Global’s conduct has shaken confidence in the trustworthiness of LNG suppliers at a critical time, and is harming the stability and growth of the LNG industry.”
BP’s filing follows a similar request made by Repsol SA, another Calcasieu Pass customer, earlier this year for more disclosure. FERC rebuffed the request, saying the options to intervene in a commission proceeding are limited to requesting a rehearing of a final order and seeking a judicial review.
Venture Global’s CEO Michael Sabel this month pushed back against the claims made by BP and Shell plc, which have joined Repsol and Edison SpA in arbitration proceedings against the terminal operator. He told the Financial Times that his company is a “catastrophe” and “competitive threat” to the companies alleging the contract violations. He said customers haven’t lost trust in the company, as they’ve continued to sign up for volumes from the company’s other projects.
Indeed, a state-owned German company on Monday urged FERC to approve Venture Global’s proposed CP2 export project in Louisiana. Securing Energy for Europe GmbH (SEFE) wrote in a filing that it “respectfully requests that FERC place the greatest importance and urgency on granting the final approval of CP2 LNG and its CP Express Pipeline.”
An affiliate of SEFE agreed to buy 2 mmty of LNG from the terminal.SEFE’s filing follows a similar request made by Inpex Corp. and Jera. Co. Inc., some of Japan’s largest LNG players, for FERC to “make a timely decision” on the 24 mmty CP2 terminal. FERC’s next open meeting is Dec. 19.
