SEATTLE (Oil Monster): bp plc. has sought intervention of the U.S. Federal Energy Regulatory Commission (FERC) in its alleged contract disputes with Venture Global LNG Inc.
The energy major accused Venture Global of violating its long-term supply contract by not selling gas cargoes from its Calcasieu Pass, Louisiana plant. Instead it supplied customers through one-off deals, the letter sent by bp to FERC noted. The letter alleged that Venture Global has refused to follow the FERC regulations.
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Venture Global has commenced plant operations in March last year, but has not shipped gas to bp and other parties with whom it had entered into long-term supply deals. Venture Global claimed that the contracts are yet to come into effect as the plant was still in startup or commissioning stage. Instead it sold cargoes into the spot market, for significantly higher prices.
Meantime Venture Global spokesperson said that the company plans to file a formal response to the letter in due course. The complaint filed by bp has no merit and is yet another attempt by bp to use FERC to advance its own interest in the commercial dispute.
The others to initiate arbitration proceedings over alleged delayed start of the contract include Shell and Repsol SA.
