BP: Venture Global Can’t Justify Calcasieu Pass Delay

Oil and gas producer BP Plc told federal regulators on Wednesday that it has reviewed confidential commissioning documents and does not believe Venture Global LNG needs more time to begin commercial production.

Venture Global LNG's Calcasieu Pass plant has been at the center of a long-running dispute involving energy companies including BP and Shell over access to LNG from the plant.

Venture Global is expected to become the second largest U.S. exporter of the super chilled gas when it starts producing from its new 20 million metric tons per annum (MTPA) by the end of the year. This would be its second LNG plant and will reinforce the U.S. position as the world's largest LNG exporter.

BP said it has reviewed the documents submitted by Venture Global under a protective order and "reiterates its position that no extension is required", the company told federal regulators.

The documents cover ongoing repairs to a heat recovery steam generator that were filed under seal as well as over 124 weekly commissioning and site inspection reports.

The Arlington, Virginia-based firm's Calcasieu Pass plant has been producing and shipping LNG for more than two years, but has not provided contract customers with supplies, saying the plant is not yet fully operational.

Venture Global applied to the Federal Energy Regulatory Commission for an extension to start commercial operations of its Calcasieu Pass LNG-export facility in Louisiana to next year, but its customers said they could not justify the extension unless they had access to confidential commercial documents.

On July 25, an administrative law judge issued an order allowing BP and other Venture Global customers access to the documents.

Venture Global was not immediately available for comment.

(Reuters - Reporting by Curtis Williams in Houston; Editing by Rod Nickel and David Gregorio)