BP has contested the approval for Venture Global LNG’s Louisiana export facility by the US energy regulator, reported Reuters.
In a letter filed with the Federal Energy Regulatory Commission (FERC), the UK oil and gas company has argued that the regulator failed to conform to its norms.
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Venture Global LNG started processing natural gas at its Calcasieu Pass, Louisiana, export facility in early 2022.
The liquefied natural gas (LNG) exporter is said to have sold more than 200 cargoes of LNG under its accounts, without fulfilling its long-term LNG supply agreements with BP and other customers.
“By failing to follow the Commission’s requirements …(Venture Global Calcasieu Pass) has immunised its self-serving assertion that commercial operations must be deferred from the public scrutiny,” BP was quoted as saying in the letter.
The commission’s transparency criteria have not been fulfilled by FERC’s oversight of LNG facility operations, according to BP.
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By GlobalDataCiting ongoing matters before the commission, an FERC representative declined to comment on the news, the publication said.
BP’s letter follows a request by Spanish energy company Repsol to reopen regulators’ approval for Venture Global LNG’s export facility.
The US Department of Energy rejected Repsol’s request stating that disputes over contract terms and performance were issues for the commercial parties to resolve.
Responding to BP’s letter, Venture Global LNG representative Shaylyn Hynes said: “The complaint that BP filed with FERC has no merit and is another attempt, after Repsol tried and failed, to use a federal energy regulator to advance its own interests in a commercial dispute.”
Venture Global LNG will be submitting a formal response to BP’s letter, Hynes added.
Energy companies including BP, Shell, Repsol and Edison have initiated arbitration proceedings against Venture Global LNG over non-fulfilment of LNG contracts.
