China's Unipec wants say in Venture Global LNG's extension request
(Reuters) - Chinese state-owned energy trader Unipec asked U.S. regulators for a chance to intervene in a request from LNG developer Venture Global LNG to extend the commissioning period for its Louisiana export project.
The request comes amid an ongoing dispute between Venture Global and customers of its Calcasieu Pass, Louisiana, facility, who say they have lost billions of dollars in profit from undelivered cargoes under long-term contracts.
Venture Global's long-term customers, including Unipec, have not received contracted cargoes of LNG because the plant has been in commissioning stage, in which it prepares for commercial operation, for almost two years. At the same time Venture Global has sold spot cargoes on the international market, raking in billions of dollars in revenue.
bp, Shell, Repsol, Edison and Orlen earlier opposed an extension of the commissioning period or asked for an opportunity to view confidential documents on the plant's startup.
Unipec said it missed a March 8 deadline to intervene and asked the Federal Energy Regulatory Commission (FERC) for additional time, citing an administrative oversight. It holds two contracts with Venture Global LNG.
Venture Global LNG has said its contracts allow it to sell cargoes while the plant is being commissioned. FERC has stayed out of the controversy.
On Friday, Shell asked regulators to deny Venture Global LNG's request for an extension, calling it moot because the facility has been operating above its capacity for more than a year while in the commissioning process.
Arlington, Virginia-based Venture Global has exported 257 pre-commercial cargoes through December, 156 more than the six other LNG export facilities combined since 2016, Shell said in its filing to FERC.
Last year, Venture Global sold its gas for an average of $48.8 million per cargo, or $29 million more per cargo than if the LNG was sold at the average of other U.S. exporters' prices, Shell estimated, using U.S. Department of Energy data.
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