Venture Global shares soar after court rejects Shell’s challenge to LNG ruling

Venture Global's shares jumped by more than 8% Tuesday, reaching their highest level since 10 October after a New York court rejected Shell's bid to overturn an arbitral award in favor of the U.S. gas developer.

The British oil giant had originally filed a complaint regarding Venture Global's alleged improper sales of LNG, but lost the arbitration in August. Shell appealed the decision in November.

Justice Joel Cohen, of the state's?Supreme Court, said that no further evidence gathering was necessary and the court "owed substantial deference" arbitral decisions.

We believe that the stock price is still depressed because of arbitration overhang. This news will be viewed as a 'positive,' according to UBS analyst Manav Gupta.

Venture Global was also sued by other energy companies, including BP, Italy’s Edison, Spain’s Repsol, and Portugal’s Galp.

Venture Global has been accused by the companies of profiting on the spot LNG market, when prices soared following Russia's invasion in Ukraine. Instead of delivering the cargoes that they had agreed to a year before.

Shell and Repsol, out of the broader arbitration?claims against the LNG producer have already lost, while BP has won?its case and is awaiting a damage decision.

Venture Global shares have recovered the losses incurred following BP's arbitration loss in October.

In addition to Tuesday's move, shares of the company are up more than 87% this year.

(source: Reuters)