Venture Global delivers first US LNG cargo to Edison

Italian energy company Edison announced on Wednesday that it had received its first cargo of Liquefied Natural Gas (LNG) delivered by Venture Global, a U.S.-based firm. It added that it would pursue legal action over the delays in delivery.

Edison reported that a cargo of 165,000 cubic meters of LNG, from Venture Global’s Calcasieu Pass facility in Louisiana, arrived at the Italian Port of Piombino to be regasified before being fed into the Italian network.

Edison's Executive vice president for Gas & Power Portfolio Management & Optimization, said in a press release that the delivery marked the beginning of a contract Edison had signed with Venture Global back in 2017.

The statement said that the arbitration Edison started two years ago before the London Court of International Arbitration for "breach of contract terms by Venture Global" continues.

Edison is among several European energy companies including Shell, BP, and Galp who have filed arbitration cases claiming Venture Global intentionally failed to fulfill its supply contracts by dragging their feet to commissioning the plant in order to profit from higher spot price.

Venture Global said that the Calcasieu Pass process took longer than usual due to unforeseen circumstances.

The US firm, which is the second largest producer of LNG in America, blames the COVID-19 virus, two hurricanes, and a force-majeure event caused by problems with the facility's island power for the prolonged commissioning.

(source: Reuters)