US regulators support Venture Global LNG's claims of equipment failure

U.S. regulators said Venture Global LNG took adequate steps on Friday to correct equipment issues at a Louisiana-based gas-processing facility that have prevented the company from delivering goods to long-term customers under contract for over two years.

The Federal Energy Regulatory Commission's findings support the U.S. liquefied gas exporter’s claim that the Calcasieu Pass plant in Louisiana has not been fully commissioned.

Venture Global LNG is battling a half-dozen contract arbitration suits from customers regarding the plant's issues. Shell, BP and Orlen, among others, claim Venture Global made billions in profits by improperly holding LNG cargoes, claiming that the plant was not fully functional.

BP did not respond to a request for comment about the FERC Report. Shell and Venture Global LNG declined comment.

In a report on the status of the project, FERC stated that the Venture Global team had approached the diagnosis and remediation in a technically sound manner.

Venture Global is on track to become the U.S.'s second largest LNG exporter by the end of the year when it begins producing super-chilled gas at another Louisiana facility, which will be the U.S.'s second-largest LNG facility in terms of annual production volume. Reporting by Curtis Williams, Houston; editing by Will Dunham

(source: Reuters)