Source: Venture Global informs Plaquemines Phase 2 buyers of LNG deliveries on time

?U.S. According to a source with direct knowledge, Venture Global told its customers at the Plaquemines Phase 2 Export Plant in Louisiana that they are on track to deliver contracted cargoes according to schedule and at prices previously agreed.

Exxon Mobil, Chevron and other major energy companies are among the customers of Plaquemines Phase 2. Energy companies.

In a Tuesday letter to its customers, the Virginia-based firm said that it "remains committed" to beginning long-term delivery from Plaquemines phase 2 by the second quarter 2027. This is despite the recent rise in global gas prices.

Venture Global has faced disagreements over 'the timing of LNG deliveries contracted at its first facility at Calcasieu Pass, Louisiana. The latest reassurance is that LNG prices have risen sharply in Europe and Asia following disruptions in global energy markets due to the U.S./Israeli conflict against Iran.

The higher spot LNG prices can dramatically increase the value uncontracted cargoes. This may cause buyers to worry that their project schedules and commercial arrangements might change due to market conditions.

Customers of Phase 1 Plaquemines should receive their cargoes as early as October 31. Previously reported.

Several customers, including Shell, BP and Repsol as well as Edison and Poland's Orlen, have filed arbitration and lawsuits against Venture Global. This is after the company delayed commercial operations at Calcasieu Pass while continuing to sell cargoes on the spot market, during a time of high global LNG prices.

The dispute?became a closely watched legal battle in the global LNG sector and highlighted the risks buyers have when projects are delayed.

(source: Reuters)