We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BP Questions US Regulator's Venture Global LNG Oversight
Read MoreHide Full Article
BP plc (BP - Free Report) has urged U.S. energy regulators to step in amid an intensifying conflict with Venture Global LNG, a U.S. natural gas exporter.
BP alleges that Venture Global is violating FERC disclosure rules and operating opaquely, affecting long-term customers.
Venture Global, a key U.S. LNG gas exporter since early 2022, has sold more than 200 gas cargoes independently, neglecting long-term contract customers like BP. These customers claim to have lost billions in revenue.
The filing urged regulators to force Venture Global to disclose documents regarding delayed LNG deliveries to BP and other long-term buyers. During this delay, Venture Global profited significantly by selling LNG cargoes to other buyers at higher prices, exceeding $14 billion in sales during an extended LNG plant ramp-up.
BP dismissed Venture Global’s reasons for delaying sales to long-term customers as deceptive and not credible. In December 2022, BP initiated a private arbitration claim against Venture Global.
Venture Global has maintained that it has adhered to the terms of its contracts, asserting that BP’s complaint lacks merit. In response, Venture Global characterizes the complaint as an effort by BP to leverage a federal energy regulator for its commercial interests in the dispute.
Venture Global, positioning itself as a swift and cost-effective LNG supplier, remains transparent with customers. Technical issues at Calcasieu Pass are being addressed, but until resolved, the plant can produce LNG without reliably meeting long-term contract obligations.
Venture Global has suggested potential delays in delivering gas to long-term customers, including BP, until late 2024. This disagreement introduces uncertainty to the LNG market, impacting the global energy transition away from more polluting fossil fuels.
Repsol (REPYY - Free Report) , a long-term customer of Venture Global, previously urged U.S. Energy Department officials to reassess FERC’s approval of Calcasieu Pass earlier this year. However, the DOE dismissed the requests, citing a lack of grounds to challenge FERC's decision-making.
In response to BP’s recent complaint, Venture Global characterized it as another effort, following Repsol's unsuccessful attempt, to employ a federal energy regulator to further BP's interests in a commercial dispute.
EOG Resources (EOG - Free Report) boasts an appealing growth profile, delivers upper-quartile returns and is guided by a disciplined management team.
EOG Resources has a strong focus on returning capital to shareholders. From 1999 through 2024, the company is committed to raising its regular dividend at a compound annual growth rate of 21%. EOG has never suspended or lowered its dividend, even during business turmoil, reflecting solid underlying business.
Liberty Energy (LBRT - Free Report) offers hydraulic fracturing services to onshore upstream energy companies across multiple basins in North America.
Liberty’s board of directors announced a cash dividend of seven cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. This dividend reflects a 40% rise from the previous quarter’s level. As part of its shareholder return policy, LBRT repurchased shares worth $29 million at an average price of $16.38 per share.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
BP Questions US Regulator's Venture Global LNG Oversight
BP plc (BP - Free Report) has urged U.S. energy regulators to step in amid an intensifying conflict with Venture Global LNG, a U.S. natural gas exporter.
BP alleges that Venture Global is violating FERC disclosure rules and operating opaquely, affecting long-term customers.
Venture Global, a key U.S. LNG gas exporter since early 2022, has sold more than 200 gas cargoes independently, neglecting long-term contract customers like BP. These customers claim to have lost billions in revenue.
The filing urged regulators to force Venture Global to disclose documents regarding delayed LNG deliveries to BP and other long-term buyers. During this delay, Venture Global profited significantly by selling LNG cargoes to other buyers at higher prices, exceeding $14 billion in sales during an extended LNG plant ramp-up.
BP dismissed Venture Global’s reasons for delaying sales to long-term customers as deceptive and not credible. In December 2022, BP initiated a private arbitration claim against Venture Global.
Venture Global has maintained that it has adhered to the terms of its contracts, asserting that BP’s complaint lacks merit. In response, Venture Global characterizes the complaint as an effort by BP to leverage a federal energy regulator for its commercial interests in the dispute.
Venture Global, positioning itself as a swift and cost-effective LNG supplier, remains transparent with customers. Technical issues at Calcasieu Pass are being addressed, but until resolved, the plant can produce LNG without reliably meeting long-term contract obligations.
Venture Global has suggested potential delays in delivering gas to long-term customers, including BP, until late 2024. This disagreement introduces uncertainty to the LNG market, impacting the global energy transition away from more polluting fossil fuels.
Repsol (REPYY - Free Report) , a long-term customer of Venture Global, previously urged U.S. Energy Department officials to reassess FERC’s approval of Calcasieu Pass earlier this year. However, the DOE dismissed the requests, citing a lack of grounds to challenge FERC's decision-making.
In response to BP’s recent complaint, Venture Global characterized it as another effort, following Repsol's unsuccessful attempt, to employ a federal energy regulator to further BP's interests in a commercial dispute.
Zacks Rank & Stocks to Consider
BP currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EOG Resources (EOG - Free Report) boasts an appealing growth profile, delivers upper-quartile returns and is guided by a disciplined management team.
EOG Resources has a strong focus on returning capital to shareholders. From 1999 through 2024, the company is committed to raising its regular dividend at a compound annual growth rate of 21%. EOG has never suspended or lowered its dividend, even during business turmoil, reflecting solid underlying business.
Liberty Energy (LBRT - Free Report) offers hydraulic fracturing services to onshore upstream energy companies across multiple basins in North America.
Liberty’s board of directors announced a cash dividend of seven cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. This dividend reflects a 40% rise from the previous quarter’s level. As part of its shareholder return policy, LBRT repurchased shares worth $29 million at an average price of $16.38 per share.