Shell has encountered a significant obstacle in its pursuit of accountability from Venture Global for the alleged failure to deliver contracted volumes of liquefied natural gas (LNG). A recent court ruling denied Shell and other European energy firms access to key commissioning documents related to Venture Global’s Calcasieu Pass LNG facility.
Shell, along with six other major European energy companies, had sought these commissioning documents from the Federal Energy Regulatory Commission (FERC). While the FERC granted access to some of the requested information, an administrative judge appointed by the commission denied access to other documents. The judge argued that Venture Global was only required to provide non-public documents dated before January 2022.
This ruling marks the latest chapter in an ongoing dispute between Venture Global and the companies that financed the construction of its Calcasieu Pass facility. Venture Global has profited billions from selling LNG on the spot market, while Shell and its partners contend that the company has failed to meet its long-term contractual obligations, resulting in significant financial losses.
The controversy centers around a loophole that allowed Venture Global to trade LNG on the spot market prior to the completion of its production facility. In an effort to maintain its spot market operations, the company has delayed the official completion of the Calcasieu Pass facility as long as possible. However, as legal actions from investors escalate, it may find its ability to postpone further challenged.
Last month, Shell disclosed that Venture Global had generated approximately $3.5 billion from spot market LNG sales that it was contractually obligated to supply under long-term agreements. This shortfall allegedly caused serious sourcing issues for one unnamed company, which was forced to procure gas from five other U.S. producers at an additional cost of $1.5 billion. Poland’s Orlen was identified as the company most impacted by its dealings with Venture Global.
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