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BP accuses Venture Global of violating contract by selling U.S. factory cargoes in one-off deals rather than long-term agreements. Letter sent to the Federal Energy Regulatory Commission on Monday.
Venture Global LNG is facing a dispute with bp Plc over liquefied natural gas cargoes, which is causing turbulence in the market for the super-cooled fuel. The London-based supermajor accuses Venture Global of violating its contract by selling cargo from its plant in Calcasieu Pass, Louisiana, through one-off deals rather than supplying customers signed to long-term agreements. Venture Global began operations at the plant in March 2022, but has not been shipping gas to BP and other energy giants that have agreed to deals of 10 years or more, saying the contracts are not yet in force because the facility remains in progress. operation, or commissioning, phase.
This dispute between bp Plc and Venture Global is affecting the super-cooled fuel market, with bp accusing the company of violating its contract and selling cargoes on the spot market, where prices are significantly higher. Shipment delays have emerged as a growing point of contention between Venture Global, the developer of major U.S. LNG export terminals, and some of the world's biggest energy companies. This impasse comes at a crucial time, with Europe eager for more fuel heading into winter and the US poised to become the biggest global LNG exporter. Customers including bp, Shell Plc and Repsol SA have initiated arbitration proceedings over the delay in contract commencement.
Venture Global LNG faces alleged contract disputes
Venture Global LNG, a US energy, has been experiencing alleged contractual disputes in the super-cooled fuel market. The company, specialized in liquefied natural gas, is facing challenges with regulators and other aspects of its operations. factory of Venture Global LNG has long term agreements and also participates in the spot market, subject to regulations and variations in prices.
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Venture Global LNG's Formal Response to Alleged Contract Disputes
Venture Global LNG, in response to alleged contractual disputes, has engaged in arbitration proceedings with the Repsol SA, one of Venture Global’s partner companies. The company seeks to resolve disputes in a fair and transparent manner, in accordance with applicable regulations and agreements established between the parties.
Venture Global LNG reaffirms its commitment to integrity and ethics in business, maintaining a proactive stance in the face of alleged contractual disputes. The company remains focused on its operations and on providing quality energy to its customers, following the best market practices.
Venture Global LNG reaffirms its commitment to integrity and ethics in business, maintaining a proactive stance in the face of alleged contractual disputes. The company remains focused on its operations and on providing quality energy to its customers, following the best market practices.
Source: World Oil
