Venture Global wins arbitration against Shell for LNG cargoes contracted

Venture Global, a U.S. LNG company, announced on Tuesday that it had won a court battle against Shell for failing to deliver liquefied gas under long-term agreements starting in 2023.

Shell, BP and Edison filed arbitration claims in 2023 accusing Venture Global that it was profiting off the sale of LNG at the spot market, while failing to deliver their contracted cargoes out of the Calcasieu Pass facility in Louisiana.

Venture Global was accused by the companies of profiteering, as it sold commissioning cargoes for higher prices than long-term contracted prices.

Shell issued a statement saying that they were disappointed by the result but respected the Tribunal's ruling.

The company stated that trust in long-term contracts was the foundation of the LNG industry, and is essential for continuing investment and sustainable growth.

Venture Global, a company based in Arlington, said that the tribunal's decision reaffirms its commitment to its customers.

Venture Global denied this claim. It said it had delayed the move to commercial operations due to a defective electric system which did not allow for the plant to function optimally. Venture Global estimated a fine of up to $1,6 billion in its second quarter earnings report.

The report stated that some of the companies participating in the arbitration wanted a higher fine.

(source: Reuters)