EnBW’s contract specifies its first shipments would begin in 2026. Repsol’s attorney did not reply to requests for comment on the DOE appeal. Shell, GALP and PGNiG declined to comment. In its reply to DOE, Venture Global chastised Repsol as an “impatient” customer. It wants the department to evaluate “whether Venture Global is complying now with the requirements of DOE’s orders and making accurate representations to DOE and its staff.” Repsol recently asked DOE to reopen its permit approvals of Calcasieu Pass. “Given that Edison assumes that there is no legal justification for such delay and that the situation is not tolerable any longer, Edison had no other choice than starting in May an arbitration proceedings,” a spokesperson for the Italian utility said. Its customers include Edison, Repsol, Shell, Portugal’s GALP, German utility EnBW and Polish gas company PGNiG, which was acquired last year by oil refiner PKN Orlen. That volume irked contract customers who believe Venture Global took advantage of high spot LNG prices at their expense.
The Calcasieu Pass plant generated and shipped about 11 cargoes per month from March 2022 to this year that were sold as pre-commercial supplies. Last year, prices jumped to $89 per mmBtu in August from $23 per mmBtu in February when Russia invaded Ukraine. LNG at the time cost between $8 and $12 per million British thermal units (mmBtu) in Europe. Still, Venture Global shipped at least 128 cargoes from Calcasieu Pass in the 12 months to March, and most went to Europe at a time when spot prices were at all-time highs.Įdison and Repsol signed purchase contracts with Venture Global in 20, respectively.
The shipments to date have been pre-commercial, or outside its contracted volumes because of the phased startup. Its modular design “has required substantial testing and a phased commissioning” or startup period, she added.Ĭriticisms of its continued shipments to buyers willing to pay high spot prices during that lengthy process represents “an attempt to damage Venture Global’s reputation and gain commercial leverage,” Hynes said.
#Calcasieu pass lng project full#
The company “remains in full compliance with all obligations under our long-term contracts, including timing,” spokeswoman Shaylyn Hynes told Reuters. Venture Global described the complex at the time of its first cargo shipment last year as holding “the global record for the fastest large-scale greenfield LNG facility to ever be built.” ‘Phased Commissioning’īut a year after that first cargo left the docks at the plant, Venture Global disclosed that the plant’s on-site power supply facility required “extensive repairs” that would delay commercial operations. The facility is the first of three complexes that will cost more than $20 billion and when completed produce 70 million tons of LNG per year. Venture Global’s Calcasieu Pass LNG export facility in Cameron Parish, Louisiana uses a modular design that stitches together 18 liquefaction units that combined deliver up to 12 million tons of the supercooled gas. Department of Energy (DOE) for failing to provide it with cargoes. Spanish energy firm Repsol SA recently challenged the Arlington, Virginia-based company in an appeal to the U.S. Italian electric utility company, Edison SpA EDNn.MI, in May brought an arbitration proceeding against Venture Global over its failure to supply cargoes, Edison’s spokeswoman said.
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