Venture Global soars following arbitration victory in case brought by Spain’s Repsol

Venture Global shares soared by nearly 8% after an arbitral tribunal ruled in the U.S. supplier of liquefied gas,?in a dispute between Spain's Repsol.

Repsol filed the lawsuit?in?2023 due to Venture Global's failure to deliver LNG under a long-term 20-year contract.

The International Chamber of Commerce in Paris denied Repsol’s claims and determined that the U.S. firm had acted in accordance with their agreement as a “reasonable?and prudent operator”.

Venture Global, second largest LNG exporter in the U.S. has won two out of three arbitrations against it that were brought in 2023.

In August of last year, the company was awarded a favorable tribunal decision following a similar arbitration. In October, however, the tribunal ruled in favor of Venture Global when it was pursuing a case against BP.

Venture Global is also facing claims from other companies. These include Edison, an Italian company, and Galp, a Portuguese firm.

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 they had agreed to years ago.

Venture Global stated that it has fully honored its long-term contract terms and is confident of winning the remaining cases.

UBS analyst Manav gupta said that additional arbitration results in proceedings with Edison Galp, and Orlen are expected to be published between?2026-2027.

Venture Global's Market Capitalization has dropped from $58 billion when it first went public in January of last year to $22,16 billion at Wednesday's close.

UBS analysts stated that the stock is still depressed because of the arbitration overhang. They added that the victory against Repsol will be a huge relief to investors.

(source: Reuters)