SEATTLE (Oil Monster): Orlen SA- Poland’s state-owned largest oil and gas company has lodged an arbitration case against leading U.S. liquefied natural gas exporter Venture Global LNG Inc. on alleged disputes in contract with the company. The company alleged that the U.S. exporter has failed to honor its long-term contract with it.
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Orlen SA accused Venture Global LNG of violating its long-term supply contract by not selling gas cargoes from its Calcasieu Pass, Louisiana plant. On the contrary, it supplied customers through one-off deals, thus violating FERC regulations.
It must be noted that Venture Global had started plant operations in March 2022, but has not yet shipped gas to parties with which it had entered into long-term supply contracts The company claimed that the contracts are yet to come into effect as the plant is still in commissioning stage. The deliveries under the long-term contract are supposed to begin only by end-2024, said Mike Sabel, CEO.
Poland has signed several LNG contracts with the U.S. and other global suppliers in past years, as part of its intention to sever ties with Russian exports. Incidentally, Orlen SA has another deal with Venture Global LNG, which will come into effect in 2026.
Earlier, Shell plc and bp plc too had filed similar supply-related complaints against Venture Global LNG.
