HomeNewsVenture Global LNG wants force majeure at first plant extended to 2025

Venture Global LNG wants force majeure at first plant extended to 2025

12/23/2024

Venture Global LNG wants to extend the force majeure at its Calcasieu Pass liquefied natural gas (LNG) plant in Louisiana (U.S.) to 2025, delaying first supplies under long-term contracts to three years after starting production, according to its initial public offering document.

The plant's extended commissioning, due to power issues, has led to contract arbitration cases brought by bp, Shell, Edison, Repsol, Galp and Orlen. The cases could cost Venture Global billions of dollars if it loses, an IPO document filed on Friday showed.

Under the extended force majeure, customers would not be able to terminate their sales and purchase agreements after June 2025, Venture Global told potential investors in its IPO filing. Force majeure is a contract clause that frees parties from obligation due to uncontrollable events.

The long-term customers disagree with the force majeure, first imposed in 2023, but have not moved to end their contracts, Venture Global said in its IPO document.

bp declined to comment and Shell has in the past called Venture Global an unreliable partner.

Venture Global has moved from financial go-ahead to first LNG in 30 months, the company said, and in 2025 could become the second-largest U.S. LNG exporter. Its second export plant, Plaquemines LNG, recently began producing first LNG. A first shipment from that Louisiana plant could come within days.

Venture Global is set to offer shares to the public in the new year and plans to become one of the world's largest exporters of the superchilled gas.

The IPO document did not list the number of shares to be offered or a proposed price.

The company said it expects to retain at least 50% ownership, the document said.

 

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