Global energy heavyweights BP, Edison, and Shell are calling on U.S. and EU authorities to intervene in an escalating dispute with Venture Global LNG. The Arlington, Virginia-based company faces arbitration claims from at least four customers, including the three energy giants, citing a lack of gas supplies amid operational challenges at its Louisiana plant.
Venture Global LNG attributes the plant’s limited operation to faulty power equipment undergoing repairs. In response, the trio has sought diplomatic pressure from The Hague and Washington to compel Venture Global LNG to honor contractual obligations. Shell accuses the firm of diverting resources toward a second LNG export plant instead of prioritizing repairs on the initial facility, a move that has reportedly undermined confidence in American LNG suppliers, according to a letter from BP executive Carol Howle, according to Reuters.
Despite appeals for intervention, both EU and U.S. officials view the dispute as a contractual matter between commercial entities, as communicated by a Venture Global LNG spokesperson. Shell’s request, made during an Oct. 30 task force meeting, did not prompt immediate action. The firm anticipates bringing attention to potential concerns about trust in U.S. LNG rather than expecting an immediate resolution.
Venture Global LNG asserts that the Calcasieu Pass plant is operating at full capacity and has generated over $18.2 billion from the sale of more than 200 cargoes. However, Shell and other customers argue that the company has prioritized profits in a surging global gas market over Europe’s energy security. They claim delayed deliveries until late 2024 and contend that Venture Global LNG has profited from the market rally.