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Shell skeptical about Venture Global ( VG ) delivery commitments

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Venture Global ( VG ) faced arbitration cases from oil companies

By Curtis Williams

HOUSTON, Feb 17 (Reuters) - Venture Global LNG

will begin commercial operations at its Calcasieu Pass plant in

Louisiana on April 15, the company said on Monday, some three

years after it shipped its first LNG cargo in a move that led to

a protracted dispute with customers.

Long-term customers, including Shell and BP,

have been notified of the start of commercial operations, the

company said.

Venture Global's ( VG ) failure to move to commercial operations years

after it started selling the superchilled gas on the spot market

led to contract arbitration cases brought by some of the world's

top oil and gas producers, including BP, Shell, Edison

, Orlen ( PSKOF ) and Repsol.

Shell said it welcomed the announcement but was not

optimistic. Shell said it had been told for nearly three years

that deliveries from the plant were forthcoming.

"We remain skeptical of their intent to fulfill their

obligation to provide the cargos," Shell said in a statement to

Reuters.

BP and Edison declined to comment on the announcement.

The facility will start commercial operations in under 68

months from being given the financial go ahead and despite

substantial impacts of two hurricanes, the COVID-19 pandemic and

manufacturing issues, the company said.

"These efforts now allow us to supply our long-term

customers with the full 20-year contract term of the

lowest-cost, clean LNG as promised under our contracts," Venture

Global ( VG ) said in a statement.

Venture Global ( VG ) recently became one of the most valuable U.S. LNG

companies when it became a publicly traded company in January.

It told investors at that time that its strategy is to have

extended commissioning periods so that it can maximize its

profits through sales on the spot market at higher prices than

it can get under long-term contracts.

Venture Global's ( VG ) stock was up more than 4% to $16.60 in

midday trading on Tuesday.