Back in December 2018, Venture Global awarded the engineering, procurement, and construction (EPC) contract to Kiewit for the Calcasieu Pass LNG export project in Cameron Parish, Louisiana.
Calcasieu Pass produced its first LNG on January 19, 2022, and the first commissioning cargo left the facility on March 1.
However, Venture Global has not yet declared the start of commercial operations at the 10 mtpa facility which consists of 18 modular units configured in 9 blocks, and it has sold hundreds of “commissioning cargoes” up to date.
Energy giants Shell and BP and other firms are in an dispute with Venture Global over the launch of commercial operations at the facility and they previously launched arbitration proceedings against Venture Global.
In June this year, the US FERC has ordered Venture Global to provide its customers with documents about the commissioning of the Calcasieu Pass LNG export terminal in Louisiana.
“Acrimonious” relation
Under the contract awarded in 2018, Kiewit’s role included installing and integrating the key components of the Calcasieu Pass facility – although those components were provided by other contractors and manufacturers – and designing and constructing what is known as the “balance of plant” equipment.
Kiewit was tasked with developing and maintaining the project schedule and sequencing, and it also helped with the initial start up of the facility’s components.
According to a New York State Supreme Court filing dated August 2, “the relationship between Kiewit and Venture Global during Kiewit’s work on the project can best be described as acrimonious, and the parties have not had a commercial relationship since Kiewit’s work under the agreement concluded,” Venture Global said.
To enable its work to construct the Calcasieu Pass LNG terminal, Kiewit was entrusted with “highly sensitive, proprietary plans, processes, technical specifications, schedules, and more for the entire project.”
It includes “detailed and highly sensitive information about the multi-billion-dollar facility’s design and construction that for commercial, regulatory, and public safety reasons cannot be made public or disseminated in an uncontrolled manner,” Venture Global said.
Award in arbitration
Venture Global said that Kiewit agreed under its EPC contract awarded in 2018 that it would keep the information “strictly confidential” and that its breach of this confidentiality requirement would cause Venture Global to “suffer irreparable harm for which damages would be inadequate.”
“Despite these agreements, and despite its previous acknowledgement that it cannot unilaterally waive confidentiality requirements, Kiewit admits that it disclosed thousands of pages of confidential information to one of Venture Global’s competitors (and customers), Shell NA LNG,” it said.
Venture Global seeks to “stop Kiewit from divulging highly confidential, commercially sensitive, and proprietary information” that Kiewit obtained from Venture Global on a “strictly confidential basis.”
The company said Kiewit’s project manager for the facility “has been speaking directly with Shell about the project.”
“Kiewit has further stated that it believes it has a right to continue disclosing confidential information to Shell and others,” Venture Global said.
“Those disclosures are plain breaches of the agreement, committed for no reason other than animosity towards a former contract counterparty. The disclosures of confidential information must stop,” it said.
Accordingly, Venture Global seeks an order, “enjoining Kiewit from disclosing Venture Global’s confidential information.”
Moreover, Venture Global will seek an award in arbitration continuing to “enjoin Kiewit’s disclosure of confidential information.”
“An order from this Court is necessary to prevent that award from being ineffectual,” it said.
LNG Prime invited Kiewit and Shell to comment on the matter.
