Document filed by Venture Global LNG shows that it wants to extend the force majeure for its first plant until 2025.
Venture Global LNG intends to extend force majeure for its Calcasieu Pass plant in Louisiana until 2025. This would delay the first deliveries under long-term contract to three years following production.
Due to power problems, the plant's prolonged commissioning has resulted in contract arbitration actions brought by BP, Shell, Edison, Repsol Galp and Orlen. Venture Global could lose the cases and be forced to pay billions in damages, according to an IPO filing on Friday.
Venture Global informed potential investors that under the extended force majeure clause, customers will not be able cancel their purchase and sales agreements after June 20, 2025. A force majeure clause is a contract provision that releases parties from their obligations due to uncontrollable circumstances.
Venture Global's IPO document stated that long-term clients disagreed with the force majeure first imposed in 2020, but had not taken any action to terminate their contracts.
Shell and BP have both declined to comment. Shell has previously called Venture Global a unreliable partner.
Venture Global said it could be the second largest U.S. LNG supplier in 2025, after achieving financial approval. Plaquemines LNG has recently started producing its first LNG at the company's second export facility. The first LNG shipment from this Louisiana plant may arrive within a few days.
Venture Global plans to issue shares in the coming year, and to become the largest exporter of super-cooled gas.
The IPO document didn't list the number or price of shares that would be offered. Document stated that the company expects to retain at minimum 50% ownership.
(source: Reuters)