Venture Global Wins First LNG Contract Arbitration Against Shell

Venture Global LNG said an international arbitration tribunal has ruled in its favour in a contract dispute brought by Shell over liquefied natural gas supply from the company’s Calcasieu Pass export complex in Louisiana. Shell and several other buyers had accused the U.S. exporter of withholding contracted cargoes that were supposed to start in 2023 and instead selling the gas on the spot market at higher prices. In its second-quarter report earlier in the day, Venture Global estimated it could face penalties of up to $1.6 billion if it lost the pending arbitrations. Tuesday’s decision eliminates that risk for the Shell claim, the first of several cases to reach a verdict. Shell said it was disappointed with the outcome but would respect the tribunal’s ruling. Cases brought by BP, Edison and Galp over similar allegations remain before separate panels. Venture Global argues that delivery delays stemmed from electrical system problems that prevented the plant from reaching full commercial service. The company says the ruling validates its position that it has complied with its agreements and underscores the reliability of long-term LNG contracts in the U.S. export market.