LNG : Global Markets puts Venture Global LNG and NLNG in perspective

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A US based firm, Venture Global LNG has condemned Shell for its poor performance track record at its LNG facilities (Shell LNG is a major shareholder of Nigeria LNG), as the dispute between European LNG buyers and Venture Global LNG escalates. According to a report by Riviera Maritime Media, the conflict involves Shell, BP, Repsol, Galp, and other European buyers of LNG.

In 2019, the agreed pricing was around $2 per million British thermal units (mmBTU), and by August 2023, spot prices for LNG surged to $89 per mmBTU, resulting in an impressive profit margin exceeding $100 million per LNG cargo. Arising from Russian- Ukraine conflict. The dispute involves allegations by the European LNG buyers against Venture Global LNG a United States of America based Company, protesting that denying them cargoes from Venture Global LNG facilities at Calcasieu Pass, led to the loss of profit in billions of dollars.

Venture Global had written a letter to the EU – US Energy security Task Force, highlighting that Shell and others had previously bought and traded commission LNG cargoes for profit outside of Europe. They also noted Shell’s “abysmal record of failed execution at its own LNG facilities where they are a major shareholder or a construction leader.”

Venture Global further stated to the EU-US Task Force that the dispute was “the latest in a series of unsuccessful attempts to bully an industry newcomer into waiving contractual rights to increase their own profits beyond recent record highs.”

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The LNG Global Markets are closely monitoring as Venture Global LNG and Nigeria LNG have been in the spot light for alleged similar breach of LNG supply contracts.

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