Sources say that Unipec was involved in the arbitration award announced by Venture Global on Oct 9.

Two sources familiar with the matter say that Venture Global announced on 9 October the settlement of an arbitral case involving Unipec. Unipec is a trading division of Sinopec - a Chinese state-owned oil company.

Venture Global announced the resolution first on Thursday, without disclosing who the other parties involved were. Venture Global added that the agreement will have no material impact to its business.

According to a March regulatory filing, Unipec entered into an agreement with Venture Global’s Calcasieu Pass Liquefied Natural Gas export plant in Louisiana for a three-year fixed-price take-or pay sales purchase contract. The agreement was for a million metric tonnes per year.

Venture Global did not identify the company but said that at the time a customer who was a long-term client had sought damages in the region of $200 million.

The Chinese company filed for arbitration in 2023. It was one of seven Venture Global clients to do so. They claimed that the U.S. provider breached their contract by selling cargoes at the spot market instead of honoring the long-term agreement.

Venture Global declined comment when contacted. Unipec didn't immediately respond to our request for comment. Reporting by Curtis Williams, America Hernandez, Francesca Landini, and Marwa Rashad, London. Editing by Nathan Crooks, Chris Reese.

(source: Reuters)