HOUSTON (Reuters) -Chevron ( CVX ) on Tuesday asked federal regulators to let it offer an opinion on Venture Global's ( VG ) recent request for more time to commission the Plaquemines LNG plant in Louisiana, at which the U.S. oil major has a long-term sales and purchase agreement that could be affected by any delay.
The filing from Chevron ( CVX ) came just days after an arbitration tribunal found that Venture Global ( VG ) breached an agreement with BP to declare timely commercial operations at its separate Calcasieu Pass plant, also in Louisiana. The LNG producer's shares plummeted 25% on Friday as investors worried about other ongoing arbitration liabilities.
Last month, Venture Global ( VG ) asked the Federal Energy Regulatory Commission to give it until the end of 2027 to commission the Plaquemines plant, citing challenges stemming from the Covid-19 pandemic. The original deadline to put the 27.2 million metric tons per annum export facility into service was September 30, 2026.
"Chevron ( CVX ) has a substantial interest that may be directly affected by the outcome of this proceeding," it wrote in the filing. The company did not immediately respond to a request for further comment.
Venture Global ( VG ) characterized the extension it is seeking as a standard procedural step that is routinely taken to align schedules with FERC in-service deadlines.
"To be clear, this request to FERC for an extension of our in-service deadline at Plaquemines has no impact on our publicly announced expectations for the commercial operations date of Phase 1 and Phase 2 which remain the same, " Venture Global ( VG ) told Reuters on Tuesday.