Galp lifts first LNG cargo from Venture Global's Calcasieu Pass plant
Portugese energy firm Galp Energia said on Wednesday it lifted its first liquefied natural gas (LNG) cargo from Venture Global's Calcasieu Pass export facility in Louisiana (U.S.) under an agreement signed several years ago.
The company said the cargo signals the start of the take-or-pay rights and obligations set forth in a 20-yr agreement signed in 2018 for 1 metric MMtpy of LNG from the plant.
The delivery comes a day after commercial operations finally began at Venture Global's Calcasieu Pass after more than a 3-yr commissioning process at the plant.
Shares of Venture Global jumped 10% on the Galp news.
Galp and other European energy companies including Shell, bp, Orlen, Edison and Repsol have filed arbitration claims saying Venture Global LNG deliberately failed to fulfill its supply contracts, dragging its feet to commission the plant so it could profit from higher spot prices.
Commissioning, or making sure a new plant's systems are functioning as designed, takes months at many LNG facilities, but the process dragged on at Calcasieu Pass due to several unforeseen circumstances.
These included the global pandemic, two hurricanes and a force majeure event triggered by issues with the facility's power island, Venture Global has said.
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