(Finance) – Venture Global, on 9 October 2024, informed Edison which will not start LNG deliveries to the Group from the Calcasieu Pass plant before April 2025.
Venture Global and Edison signed a twenty-year contract for LNG cargoes in September 2017. Despite the contract, Venture Global did not begin deliveries to Edison, citing technical problems at the plant.
Venture Global began exporting LNG cargoes in March 2022. The facility produced at nameplate capacity (10 million tonnes per year of LNG) in September 2022 and reached substantial completion in November 2022.
To date, the plant has produced, exported and sold 355 cargoes to the spot market at higher pricesgenerating over $20 billion in revenue. According to Venture Global’s October 9, 2024 letter, such spot market sales will continue until at least April 2025.
Following Venture Global’s failure to begin deliveries, Edison initiated international arbitration against Venture Global for breach of contract.