Key facts
- Venture Global lost an arbitration case to Portugal's Galp.
- Galp accused Venture Global of violating long-term LNG supply contracts.
- Venture Global could be liable for billions in damages.
- BP also won an arbitration case against Venture Global.
- Shell and Repsol lost their disputes with Venture Global.
- Edison settled with Venture Global.
Venture Global has suffered a second unfavorable arbitration ruling, this time from Portugal's Galp, concerning alleged breaches of long-term liquefied natural gas (LNG) supply contracts. Galp was one of several energy companies, including BP, Shell, Repsol, and Edison, that sued Venture Global for allegedly violating contracts to profit from higher prices on the spot market. BP also secured a win against the U.S. LNG major, while Shell and Repsol lost their respective disputes. Italy's Edison reached a settlement with Venture Global. The company could be liable for billions of dollars in damages to the winning parties. A ruling on a case with Poland's Orlen is expected by the end of the year.
Energy firms accused Venture Global in 2023 of exploiting a loophole by extending the official commissioning deadline for its Calcasieu Pass export project. Venture Global maintained it had no obligation to fulfill long-term commitments until the plant was officially commissioned, which it claimed would be in 2025. Meanwhile, the company developed a second LNG facility that began producing LNG at the end of 2024, prior to the official commissioning of the first project.
These legal challenges had raised investor concerns about trust and potential hesitation from future LNG trading clients. However, favorable rulings in cases involving Shell and Repsol, along with ConocoPhillips' recent 20-year supply deal with Venture Global, are expected to alleviate these concerns.