Chevron Wants to Weigh In on the Launch of Venture Global’s New LNG Plant

Core Viewpoint - Chevron is concerned about potential delays in the start-up of Venture Global's second LNG plant, which could affect its delivery plans under a long-term contract [1] Group 1: Venture Global's LNG Plant Update - Venture Global has requested to postpone the official commissioning of the Plaquemines LNG plant to 2027 from 2026 due to impacts from the Covid pandemic [2] - The Plaquemines LNG plant is expected to have a capacity of 27.2 million tons of liquefied natural gas per year [2] - Venture Global stated that the request for an extension does not affect the expected commercial operations date for Phase 1 and Phase 2, which remain unchanged [3] Group 2: Chevron's Concerns and Industry Context - Chevron is worried about facing delays similar to those experienced by BP, Shell, and Eni, which saw significant cargo delays while Venture Global sold LNG on the spot market [4] - Venture Global's strategy of delaying the commissioning of its first LNG plant, Calcasieu Pass, allowed it to avoid obligations under long-term contracts [4] - Chevron has expressed a substantial interest in the outcome of the regulatory proceedings regarding the Plaquemines LNG plant [6] Group 3: Legal and Financial Implications - Venture Global has faced arbitration cases, including one from BP seeking over $1 billion in compensation, with total damages sought by long-term clients exceeding $4 billion [5] - Unfavorable court rulings could lead to contract cancellations and accelerated loan repayments for Venture Global [5]