Portuguese energy company Galp Energia has announced that it has successfully lifted its first liquefied natural gas (LNG) cargo from the Calcasieu Pass facility in Louisiana, operated by Venture Global. This achievement, reported on Wednesday, marks a significant milestone in a long-term agreement established several years prior. Specifically, Galp signed a 20-year contract in 2018 that commits to the purchase of 1 million tonnes of LNG annually from the facility.
This first cargo comes shortly after the commencement of commercial operations at the Calcasieu Pass facility, which had faced a prolonged commissioning process lasting over three years. Following the news of Galp’s LNG lift, shares in Venture Global experienced a notable surge, rising by 10%. However, not all news surrounding the Calcasieu Pass facility has been positive.
Galp and various other European energy companies, including Shell, BP, Orlen, Edison, and Repsol, have initiated arbitration claims against Venture Global. They allege that the company intentionally delayed fulfilling its supply contracts, aiming to benefit from the elevated prices in the spot market. Venture Global has attributed delays during the commissioning of the facility to multiple unforeseen factors, including the global pandemic, two hurricanes, and a force majeure event linked to difficulties with the facility’s power island.
Such challenges have highlighted the complexities and difficulties often associated with bringing large energy infrastructure online, as evidenced by the extended timeline for Calcasieu Pass’s operational readiness.