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Edison to finally receive 1st Venture Global LNG cargo

(Montel) Italian energy company Edison will receive its first LNG cargo from US-based Venture Global by the end of 2024 after the delayed start to a 20-year supply contract.

The arrival would help substitute for the disruptions caused to Qatari deliveries of the chilled fuel caused by the war in the Middle East, with the deal part of Edison’s plans to diversify its supply, CEO Nicola Monti.  

Edison was “dealing with the situation by… making our purchase strategy increasingly flexible and the best way of ensuring LNG availability is having a diversified portfolio”.

The US deal would add a sixth source to its current roster of five LNG providers “and make our portfolio more dynamic and flexible.”

Edison had originally sought arbitration proceedings against Louisiana-based Venture Global after delays to the start of the 1.4bcm supply deal due to begin in 2021, with the latter pinning the problem on mechanical issues at its Calcasieu Pass facility.

Other energy majors BP, Shell and Repsol faced similar issues and had also sought arbitration, though Edison and Venture Global were unavailable for comment when contacted by Montel.

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Monti made the US LNG announcement just days after Edison said an LNG cargo due to arrive via the Suez Canal to its Adriatic terminal, Italy’s largest, missed a scheduled delivery date.

The vessel was now running 15 days late due to being forced to travel around South Africa due to the attacks in the Red Sea, said the CEO.