Oil Daily | Venture Global Nears Plaquemines LNG Start Amid Legal Disputes and Cost Challenges
Friday, Nov 29, 2024 7:00 am ET
1min read 【Industry News】
Venture Global is nearing the start of production at its new Plaquemines LNG plant in Louisiana, ahead of its anticipated IPO. The company has faced lawsuits from major oil firms like BP and Shell for withholding contracted LNG volumes to sell on the spot market for higher profits. The project has experienced cost overruns, potentially reaching $22 billion, and aims to meet increased gas demand from Europe.
Germany's Federal Constitutional Court upheld the energy windfall tax, dismissing a suit by 22 power producers claiming it was unconstitutional. The tax, introduced two years ago, redistributes surplus revenues from electricity producers to consumers. Western governments are considering taxing share buybacks to encourage reinvestment in energy projects.
BP Trinidad and Tobago signed a production-sharing agreement for the Cypre subsea gas development, aiming for first gas by 2025. Trinidad's declining gas production makes this project critical. The country's gas output has been decreasing due to declining reserves, impacting its competitiveness in the region.
【Company News】
Shares of the Adani Group surged following the indictment of its executives in the U.S. Despite the allegations, the company announced plans to invest $10 billion in U.S. energy projects. However, TotalEnergies, an Adani partner, has paused new investments until the U.S. investigations conclude.
【Others】
The Canadian government is concerned about potential U.S. tariffs on Canadian exports, including oil. The Trudeau administration, critical of the oil and gas sector for its carbon emissions, is wary of tariff impacts on the Canadian economy, especially given the limited alternative suppliers for U.S. refineries.
U.S. businessmen are lobbying for a deal with Venezuela to lift sanctions and resume oil imports to reduce U.S. energy prices and migration. Despite some sanctions relief under the Biden Administration, President-elect Trump's picks, like Marco Rubio, may advocate for tougher sanctions against Venezuela.
Venture Global is nearing the start of production at its new Plaquemines LNG plant in Louisiana, ahead of its anticipated IPO. The company has faced lawsuits from major oil firms like BP and Shell for withholding contracted LNG volumes to sell on the spot market for higher profits. The project has experienced cost overruns, potentially reaching $22 billion, and aims to meet increased gas demand from Europe.
Germany's Federal Constitutional Court upheld the energy windfall tax, dismissing a suit by 22 power producers claiming it was unconstitutional. The tax, introduced two years ago, redistributes surplus revenues from electricity producers to consumers. Western governments are considering taxing share buybacks to encourage reinvestment in energy projects.
BP Trinidad and Tobago signed a production-sharing agreement for the Cypre subsea gas development, aiming for first gas by 2025. Trinidad's declining gas production makes this project critical. The country's gas output has been decreasing due to declining reserves, impacting its competitiveness in the region.
【Company News】
Shares of the Adani Group surged following the indictment of its executives in the U.S. Despite the allegations, the company announced plans to invest $10 billion in U.S. energy projects. However, TotalEnergies, an Adani partner, has paused new investments until the U.S. investigations conclude.
【Others】
The Canadian government is concerned about potential U.S. tariffs on Canadian exports, including oil. The Trudeau administration, critical of the oil and gas sector for its carbon emissions, is wary of tariff impacts on the Canadian economy, especially given the limited alternative suppliers for U.S. refineries.
U.S. businessmen are lobbying for a deal with Venezuela to lift sanctions and resume oil imports to reduce U.S. energy prices and migration. Despite some sanctions relief under the Biden Administration, President-elect Trump's picks, like Marco Rubio, may advocate for tougher sanctions against Venezuela.
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