TotalEnergies Rejects Venture Global LNG Over Trust Issues

TotalEnergies (EPA:TTEF) declined long-term LNG supply deals with Venture Global due to trust concerns, CEO Patrick Pouyanné told Reuters. The French energy giant refused offers from Venture Global’s Calcasieu Pass and Plaquemines terminals, citing ongoing disputes with major clients like BP (NYSE:BP) and Shell (LON:SHEL) over delayed contract fulfillment.

“I don’t want to deal with these guys,” Pouyanné said, highlighting concerns over unusually low LNG prices and potential contractual risks. Despite rejecting long-term agreements, Total remains open to purchasing Venture Global's spot cargoes if prices are attractive.

Venture Global, now the most valuable U.S. LNG firm after a recent IPO, has faced criticism for prioritizing the spot market over fulfilling supply contracts. Since 2022, the Calcasieu Pass terminal has generated up to $8.6 billion in operating profits but has yet to fully transition to commercial operations. The company asserts it is adhering to contracts and expects Calcasieu Pass to be fully operational by Q1 2025.

Plaquemines, its second LNG terminal, is still under construction but has already begun processing significant gas volumes, pulling about 1.3 billion cubic feet as of Wednesday. Venture Global remains a key player in the U.S. LNG market, trailing only Cheniere in production.

As the U.S. maintains its lead as the world’s top LNG exporter, TotalEnergies' rejection underscores industry concerns about Venture Global’s reliability. The decision highlights ongoing legal tensions in the LNG sector and the risks of unfulfilled contracts.