Venture Global doesn't need any more time from BP to begin production, BP says to regulators

BP Plc, the oil and gas producer, told federal regulators that it had reviewed confidential documents and did not believe Venture Global LNG needed more time to start commercial production.

Calcasieu Pass, a plant owned by Venture Global LNG, has been the subject of a longstanding dispute involving BP and Shell regarding access to liquefied gas produced at the plant.

Venture Global will become the second-largest U.S. super chilled gas exporter when it begins producing its new 20,000,000 metric tons per year (MTPA) at the end of this year. This will be the second LNG plant, and it will strengthen the U.S.'s position as the largest LNG exporter in the world.

BP told federal regulators that it had reviewed documents submitted by Venture Global as part of a protective order. The company "reiterates" its position, saying no extension was required.

The documents include weekly reports on site inspections and commissioning, as well as ongoing repairs of a heat-recovery steam generator.

Calcasieu Pass, a plant in Arlington, Virginia, has produced and shipped LNG for over two years. However, it has not supplied contract customers, claiming that the plant was not fully operational.

Venture Global requested an extension from the Federal Energy Regulatory Commission to begin commercial operations at its Calcasieu Pass Liquefied Natural Gas-export Facility in Louisiana next year. However, its customers refused to accept the extension unless given access to confidential documents.

On July 25, a judge of administrative law issued an order granting BP and Venture Global access to these documents.

Venture Global did not respond to a request for comment. Reporting by Curtis Williams, Houston; Editing and production by Rod Nickel and David Gregorio

(source: Reuters)