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BP asks US regulator to step in natural gas row
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By Nithya Bose in UK Business News, posted December 13, 2023
BP has urged the US energy regulators to intervene in an intensifying argument with a US natural gas exporter.
The oil giant has accused Venture Global LNG of evading Federal Energy Regulatory Commission (FERC) disclosure rules.
The claims come after the startup allegedly maintained secrecy around its operations which adversely affected long-term customers.
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BP wants the FERC to intervene to force Venture Global to disclose documents related to delays in delivering liquefied natural gas (LNG) cargoes.
The filing says Venture Global's reasons for postponing deliveries are disingenuous.
It aims to force the release of confidential documents about the LNG plant on Louisiana’s Gulf Coast.
BP already has a private arbitration claim against Venture Global, which was filed in December 2022.
The conflict centers on Venture Global's alleged breach of long-term supply contracts with BP, Shell, and other major buyers.
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Despite shipping over 200 LNG cargoes since March 2022, Venture Global has not fulfilled early agreements with BP and others.
The delays have allowed Venture Global to capitalize on higher prices, surpassing $14 billion in sales.
BP says that Venture Global's conduct undermines confidence in LNG suppliers and harms the industry's stability and growth.
Venture Global has dismissed BP's claims, describing them as an attempt to use federal energy regulators to advance BP's commercial interests.
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Based in Arlington, Virginia, Venture Global has emerged as one of the world's largest gas exporters within a decade.
The company secured early contracts with industry giants like BP and Shell.
BP, Shell, and others claim that Venture Global is reneging on contracts while benefiting from surging natural gas prices.
Venture Global's CEO, Michael Sabel, argues that the company is transforming industry practices and facing resistance from incumbents.
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