BP wins arbitration against Venture Global regarding LNG cargoes
Venture Global announced on Thursday that BP had won the arbitration case it brought against Venture Global for failing to deliver liquefied gas to Venture Global under a contract with BP, which was supposed to begin in late 2022.
Venture Global announced to the market that the International Chamber of Commerce International Court of Arbitration had found Venture Global in breach of its obligations to timely declare commercial operations at the Calcasieu Pass Plant and to act as "reasonable, prudent operators".
BP's ruling is in contrast to a similar decision made by Venture Global in August, where they won a similar case from Shell. BP wants to recover damages in excess of $1 billion, plus costs and interest.
Venture Global stated in a filing that it was disappointed with the decision of the arbitration tribunal in the proceeding involving BP. The company believes the ruling contradicts its previous arbitration involving Shell.
Venture Global shares were down 10% after-hours.
Venture Global stated that a separate hearing will be held in 2026 in order to determine the amount of damages BP or other customers may claim. Venture Global also said the damages would not be limited to a ceiling on the amount BP and others can claim as stipulated in the original sale agreement.
BP expressed its satisfaction with the result of the first phase of arbitration, and said that it looked forward to the determination of damages due to BP for Venture Global's breach.
Venture Global stated that it is evaluating its options to respond to the ruling of the tribunal and will continue to defend its position.
Edison and Galp, among others, have filed lawsuits against Venture Global accusing them of profiting off the sale of LNG at the spot market, instead of supplying them with contracted cargoes of LNG from the Calcasieu Pass Export Facility in Louisiana.
Venture Global reported Thursday that they had reached a settlement with another Calcasieu Pass client who had brought it to arbitration. They did not name the company. Venture Global stated in a filing that the settlement had no material impact on their company. Reporting by Curtis Williams, Stephanie Kelly, and Sumit S. Saha, in Houston; editing by Nathan Crooks and Rod Nickel.
(source: Reuters)
