The IPO filing warns disputes could cost billions and confirms sales agreements can’t be terminated after June 2025 under extended force majeure. Credit: T.Schneider/Shutterstock.

Venture Global LNG is seeking to extend the force majeure at its Calcasieu Pass liquefied natural gas (LNG) plant in Louisiana, US, to 2025.

This move could delay the commencement of first supplies under long-term contracts to three years after production begins, as revealed in the company’s initial public offering (IPO) document.

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The document disclosed that lower gas prices have resulted in a decrease in operating profit to $1.17bn for the first nine months of the year, down from $4.1bn during the same period in 2023.

Venture Global’s extended commissioning of the plant, attributed to power issues, has led to contract disputes with major industry players, including bp, Shell, Edison, Repsol, Galp, and Orlen.

According to the IPO filing, these disputes could potentially cost the company billions of dollars if it does not prevail.

The company stated in its IPO filing that under the extended force majeure, customers cannot terminate their sales agreements after June 2025.

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Despite the disagreement from long-term customers regarding the force majeure, which was initially imposed in 2023, Venture Global stated in its IPO document that these customers have not taken steps to terminate their contracts.

A Venture Global spokesperson said: “We are working hard to complete the remaining work needed to reach this (commercial startup) milestone.”

Venture Global announced the first LNG production just 30 months after securing financial approval and is on track to become the second-largest US LNG exporter by 2025.

The company’s Plaquemines LNG plant in Louisiana has recently started production, with the first shipment expected within days.

The IPO filing did not disclose the number of shares or the proposed price but noted the company plans to retain at least 50% ownership.

According to the document, three unnamed external customers generated 73% of this year’s $3.45bn revenue over nine months, with one contributing approximately 31%.