Virginia Natural Gas sues a Natural Gas Plant

C4GT is being sued by Virginia Natural Gas, a large proposed natural gas plant in Charles City County. It is sued for allegedly breaking the terms of an agreement over natural gas supply and failing to reimburse the utility for more than $2.1 million in costs. The utility’s attorneys wrote, “Although VNG has attempted in good faith to reach an amicable resolution with C4GT, C4GT has refused to engage.”

As of March 12th, C4GT had not responded to any filings with the court or summons. The court had entered a default against the company. It was a legal acknowledgment that a party has failed to reply to the complaints on time. C4GT did not respond to a request for comments as well. The latest twist is the legal action in a story that stretches back to 2016.

When Michigan-based NOVI Energy was formed, C4GT, LLC developed and operated a natural gas plant in Charles City County. Virginia regulators approved the plant’s construction in 2017. However, the project quickly ran into financing delays, and over the past two years, they faced significant opposition from local and environmental groups.

In October 2019, Virginia Natural Gas and C4GT agreed for C4GT to purchase natural gas from the utility. In return, VNG planned to expand its infrastructure to accommodate the plant’s demand through Header Improvement Project. In the same December, the utility filed plans for expansion with the regulators. For the project to proceed, the approval of regulators is required. The company was required to finalize debt financing agreements with third parties as part of the agreement.