Venture Global seeks more time to complete Calcasieu Pass LNG terminal

US LNG exporter Venture Global LNG has requested more time from the US FERC to complete the commissioning of its Calcasieu Pass LNG export terminal in Louisiana.

Calcasieu Pass produced its first LNG on January 19, 2022, and the first commissioning cargo left the facility on March 1.

However, Venture Global has not yet declared the start of commercial operations at the 10 mtpa facility which consists of 18 modular units configured in 9 blocks.

One-year extension

“Calcasieu Pass has now completed nearly all of the construction of the project, but the commissioning phase continues with respect to certain essential facilities,” Venture Global told the US FERC in a filling dated February 15.

According to Venture Global, the 2019 FERC authorization says that the Calcasieu Pass proposed liquefaction facilities shall be constructed and made available for service within five years of the order date, or by February 21, 2024.

“Calcasieu Pass believes that it has complied with that condition, as written and read literally, because all of the project’s “proposed liquefaction facilities” (i.e., the 18 liquefaction trains configured in 9 blocks) have been placed in-service, following the Commission Staff’s October 2023 authorization for Calcasieu Pass to place its liquefaction blocks 7-9 in-service,” it said.

“While the in-service condition in the order does not utilize a more encompassing term or phrase, such as: “all of Calcasieu Pass’ facilities”, or “the export terminal,” or Calcasieu Pass’ “proposed project,” some interested stakeholders may nevertheless interpret the condition more broadly than its plain language suggests,” Venture Global said.

According to Venture Global, if the condition were to be so interpreted, Calcasieu Pass “would not be able to comply with the condition as a result of the continuing need for further commissioning, repair, rectification, and completion of certain facilities.”

Work to be completed in Q4 2024

Venture Global said that Calcasieu Pass has encountered “circumstances that have prevented it from being able to bring all its facilities into service at this time.”

That conclusion is reflected in the previously mentioned liquefaction in-service NTP, which recognized that reliability issues with certain other facilities, notably the heat recovery steam generators or “HRSGs”, require those facilities to remain in the commissioning process and the subject of a future in-service authorization, it said.

Venture Global said the project’s power generation facilities would remain in commissioning and “cannot be placed in-service until that on-going remediation work is completed, which Calcasieu Pass currently expects to happen during the fourth quarter of 2024.”

“Accordingly, to ensure compliance with the authorization order and full transparency, Calcasieu Pass hereby requests a one-year extension of the in-service condition set forth in ordering paragraph (B) to the extent that the Commission deems it necessary because certain of Calcasieu Pass’ authorized facilities — other than its liquefaction trains — will not be in-service by February 21, 2024,” Venture Global said.

“Alternatively, if the Commission interprets the in-service condition as applicable only to those liquefaction facilities, Calcasieu Pass requests that the Commission instead confirm that Calcasieu Pass has complied with the in-service condition,” it said.

Shell, BP

Long-term customers of the Calcasieu pass facility include Shell, BP, Edison, Repsol, Galp, and PGNiG.

Energy giants Shell and BP and other firms are in an dispute with Venture Global over the launch of commercial operations at the facility and previously launched arbitration proceedings against Venture Global.

Shell’s CEO Wael Sawan recently said that Venture Global has sold around 250 commissioning cargoes up to date.

“And what we see is that the plant is at or near capacity and has been consistently. So, we’re very much focused on continuing to enforce our legal rights and protect the sanctity of contracts that are there. I won’t get into the details of the legal proceedings,” he said.

“As far as Venture Global itself, it continues in commercial dispute. I’m not going to get into any details on it other than to say that we will enforce our rights rigorously,” BP’s CEO Murray Auchincloss recently said responding to a question about the dispute during the company’s earnings call.

Most Popular

Sempra Infrastructure plans 27 mtpa Port Arthur LNG expansion

Sempra Infrastructure’s Port Arthur LNG has filed a request with the US FERC to start the pre-filing process for a 27 mtpa expansion of its LNG export project in Texas.

Exmar working on new LNG projects

Belgian shipping firm Exmar is actively pursuing new LNG import and floating liquefaction projects after winning three awards over the past year.

Seapeak to sell three steam LNG carriers

Stonepeak’s Seapeak has initiated the process of selling three steam turbine RasGas II JV liquefied natural gas (LNG) carriers following the expiration of their existing Qatari charter contracts between late 2026 and early 2027.

More News Like This

Shell, partners take FID on new project to deliver more gas to Egypt

Egypt, which has turned to LNG imports over the last two years to cover domestic natural gas shortages, will receive more much-needed gas supplies after UK-based LNG giant Shell and its partners took a final investment decision on the Phase 12a development project in the West Delta Deep Marine (WDDM) concession.

Construction progresses on Woodside’s Louisiana LNG project

Australian LNG player Woodside and its contractor Bechtel continue to advance construction of the first phase of the Louisiana LNG export terminal.

Financing secured for Manzanillo LNG-to-power project

Manzanillo Gas & Power has secured financing for its Manzanillo LNG-to-power project in the Dominican Republic, which includes a floating storage and regasification unit (FSRU).

BP, XRG secure license for Venezuela offshore gas field

UK-based energy giant BP, Adnoc's international investment unit XRG, and a unit of Qatar's UCC have secured a license to explore and develop the second phase of Venezuela's offshore Loran gas field.