CVX Seeks Regulatory Review on Venture Global's LNG Project Timeline

Chevron Corporation CVX, a Houston, TX-based integrated oil and gas company, has intervened in a critical regulatory matter concerning Venture Global, Inc. VG LNG’s request for an extension to commission its Plaquemines LNG export facility in Louisiana, according to Reuters. These moves highlight Chevron’s significant commercial stake in the project, tied to a long-term sales and purchase agreement that could face disruption from any delays. The recent filing to federal regulators signals Chevron’s intent to safeguard its interests amid growing uncertainties surrounding Venture Global’s operational timelines.

Venture Global's Extension Request Raises Industry Eyebrows

In September, Venture Global filed a motion with the Federal Energy Regulatory Commission (“FERC”) asking for an extension of its deadline to place the Plaquemines LNG facility into service, moving the target from Sept. 30, 2026, to Dec. 31, 2027. The company cited supply-chain disruptions and construction delays stemming from the COVID-19 pandemic as justification. 

Venture Global characterized the extension as a routine procedural request, emphasizing that the change would not alter its publicly announced commercial operation dates for Phase 1 and Phase 2 of the project. However, this reassurance has done little to calm stakeholders, especially following recent arbitration setbacks.

Chevron’s Position Reflects High Stakes for LNG Offtakers

Chevron stated in the FERC filing that it holds a “substantial interest that may be directly affected by the outcome of this proceeding.” While the company has not provided additional public comment, the move to involve itself in regulatory discussions highlights the importance of the Plaquemines LNG project to the broader liquefied natural gas (“LNG”) strategy.

The Plaquemines facility is designed to export up to 27.2 million metric tons of LNG per year once fully operational. Chevron, along with other major energy firms, has committed to purchasing large volumes under long-term contracts. Any delay could complicate Chevron’s global LNG portfolio, disrupt trading strategies and potentially trigger commercial or legal disputes.

Fallout From BP Arbitration Decision Increases Pressure

Chevron’s intervention comes shortly after a major arbitration ruling found that Venture Global breached its obligations to BP plc BP at the Calcasieu Pass LNG facility, also located in Louisiana. That decision determined Venture Global failed to declare commercial operations within the agreed timeframe, thereby violating contractual terms.

The fallout from the BP ruling sent Venture Global’s shares tumbling by 33.4% last week, revealing market skepticism about its ability to meet obligations and deliver on time. Investors are now closely watching other long-term partnerships Venture Global holds, including those with Chevron, Shell plc SHEL and others.

With the precedent set by the BP arbitration, Chevron may be acting preemptively to protect own position, ensuring it is heard as regulators weigh the extension request for Plaquemines.

Plaquemines LNG Project: A Critical Export Hub

Plaquemines LNG is a cornerstone of the next wave of U.S. LNG export capacity. Strategically located along the Mississippi River, the project is seen as vital to expanding U.S. energy dominance in the global gas market. The initial phases aim to deliver 13.5 million metric tons per annum (mtpa), with full capacity expected to reach 27.2 mtpa.

Venture Global has already signed binding agreements for significant volumes from this facility. However, construction progress and scheduling have drawn increased scrutiny amid shifting timelines and concerns over the company’s adherence to commercial start dates.

Chevron’s Intervention Could Influence FERC’s Decision

Chevron’s entrance into the regulatory process may add weight to arguments that the extension request deserves deeper evaluation. The company is not merely a bystander, as a major offtaker, it has direct exposure to project milestones, operational delays and commercial readiness.

This move could open the door for other affected parties to step forward, particularly those with similar purchase agreements. It also raises the question of whether contractual performance at Plaquemines could follow a similar path as the Calcasieu Pass arbitration.

Industry Implications Beyond Venture Global

The broader LNG sector is closely monitoring these developments. Delays and contract disputes can affect global supply chains, influence spot market prices and shape future investment decisions. For offtakers like Chevron, commercial certainty is critical, especially in a volatile energy landscape shaped by geopolitical tensions and shifting demand patterns.

If FERC grants the extension without additional scrutiny or conditions, it could set a concerning precedent for how project developers handle delays and contractual obligations. Conversely, if regulators or stakeholders successfully push for more accountability, it may reshape how future LNG projects are managed and financed.

Conclusion: High Stakes for LNG Markets and Energy Security

Chevron’s proactive stance in the Venture Global extension request illustrates the high stakes involved in U.S. LNG infrastructure development. With billions of dollars tied to long-term contracts and growing global demand for LNG, delays like those at Plaquemines carry implications far beyond construction timelines.

The outcome of this FERC proceeding will not only affect Chevron and Venture Global but could signal a shift in how the U.S. energy sector addresses project timelines, arbitration risks and regulatory oversight. As tensions rise, all eyes remain on Washington and Louisiana, where the next chapter in America’s LNG expansion is being written.

CVX's Zacks Rank

Currently, CVX, VG, SHEL and BP have a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Venture Global is a U.S.-based liquefied natural gas ("LNG") company focused on exporting low-cost LNG from the Gulf Coast. It is known for developing projects like Calcasieu Pass and Plaquemines LNG to meet global energy demand. The company is valued at $21.95 billion.   

Shell is a global energy company headquartered in the United Kingdom, operating in oil, natural gas and renewable energy sectors. It is one of the world’s largest energy companies, with a strong focus on transitioning to net-zero emissions. The company is valued at $210.7 billion.  

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