By Curtis Williams
(Reuters) – BP Plc (BP) will begin loading its first shipment of liquefied natural gas from Venture Global’s (VG) Calcasieu Pass plant in Louisiana on Wednesday, according to LSEG data.
The BP-chartered vessel British Mentor was about to dock at the Calcasieu Pass port. It is the first cargo BP is receiving from the export facility under its supply contract, more than three years after Venture Global started selling LNG from the plant on the spot market.
Galp Energia said earlier on Wednesday that it had lifted its first cargo from Calcasieu Pass, signaling the start of the 20-year supply agreement signed in 2018 for 1 million tonnes per annum of LNG from the plant.
As of 2:45:14 PM EDT. Market Open.
BP VG
Galp’s cargo was loaded onto the Gaslog Wellington, LSEG data showed.
The two cargos are the first since Venture Global finished commissioning Calcasieu Pass on April 15.
Shares of Venture Global jumped more than 10% in early afternoon trading.
Venture Global is the second largest LNG producer in the U.S. and has helped make the U.S. the world’s largest exporter of the supercooled gas.
Venture Global’s years-long delay in providing cargoes to contracted customers of the Calcasieu Pass led to a contentious battle with companies including BP, Galp, Shell, Orlen, Edison and Repsol. They accused Venture Global of dragging its feet to commission the plant so it could profit from higher spot prices.
Venture Global has blamed the global pandemic, two hurricanes and a force majeure event triggered by issues with the facility’s power island for the extended commissioning.
Commissioning, or making sure a new plant’s systems are functioning as designed, takes just months at many LNG facilities.
(Reporting by Vallari Srivastava in Bengaluru and Curtis Williams in Houston; Editing by Shinjini Ganguli and Leslie Adler)
