ARKANSAS, Nov 12 (Future Headlines)- Global energy giants BP, Edison, and Shell have urged the U.S.-EU Task Force on Energy Security to intervene in a dispute with liquefied natural gas (LNG) exporter Venture Global LNG. The disagreement revolves around Venture Global’s failure to deliver contract supplies of LNG, prompting the companies to appeal for intervention last month. While Venture Global attributes the delays to operational issues, BP, Edison, and Shell assert that the company’s actions have raised concerns about the reliability of American LNG suppliers, leading to calls for regulatory scrutiny and contract enforcement.

BP, Edison, and Shell are among at least four customers pursuing contract arbitration claims against Venture Global LNG due to a lack of delivered gas supplies. Venture Global has cited operational issues at its Calcasieu Pass plant in Louisiana, specifically faulty power equipment requiring repairs, as the reason for the delays.

The three energy companies appealed to the U.S.-EU Task Force on Energy Security, seeking intervention in the dispute. The appeal aimed to leverage international pressure to ensure Venture Global LNG fulfills its signed contracts promptly.

Shell accused Venture Global LNG of prioritizing the construction of a second LNG export plant over completing necessary repairs to its first plant. The behavior, according to Shell, has damaged confidence in the reliability of American LNG suppliers.

BP’s executive, Carol Howle, expressed concerns about the impact on trust in U.S. LNG suppliers and suggested exploring whether the plant should be allowed to operate under current regulatory guidelines.

The U.S.-EU Task Force on Energy Security viewed the dispute as a contractual matter between commercial parties, indicating reluctance to intervene. No immediate action was taken on Shell’s request during the October 30 task force meeting.

Venture Global LNG has asserted that it is operating the Calcasieu Pass plant at full capacity and has sold over 200 cargoes, generating approximately $18.2 billion in revenue to date. The company emphasizes compliance with contractual terms and dismisses the criticisms as attempts to litigate through regulators and the media.

Shell and BP allege that Venture Global has profited from the surge in global gas markets while delaying deliveries to Europe until late 2024. Both companies have cited concerns about Europe’s energy security while engaging in LNG trading outside of the continent. Repsol previously sought the reopening of the U.S. energy regulator Federal Energy Regulatory Commission’s approval of the Calcasieu plant due to startup issues, but the request was rejected.

Reporting by Moe Khaled; Editing by Sarah White