Venture Global Loses LNG Arbitration to Portugal's Galp
A court has ruled that Venture Global breached its contract with Portugal’s Galp in the second unfavorable ruling for the U.S. LNG major. Galp was one of half a dozen energy companies that sued Venture Global for violating its long-term supply contracts for liquefied gas in order to make a fatter profit on the spot market. BP scored the other win against the U.S. company, while Shell and Spain’s…
A U.S. liquefied natural gas firm, Venture Global, has lost an arbitration with Portugal’s Galp, descending into a second loss of such magnitude for the company. Galp, among six energy entities, accused Venture Global of violating its long-term supply contracts to maximize profits on the spot market. BP prevailed against the U.S. company, whereas Shell and Spain’s Repsol suffered defeats.
Italy’s Edison reached a settlement with Venture Global. The company may owe billions in damages to the victorious parties. One case remains unresolved, involving Poland’s Orlen, with a ruling expected by year-end. Shell and other oil and gas firms alleged in 2023 that Venture Global profited from selling LNG on the pricier spot market, rather than complying with their contracts.
The firm utilized a loophole by delaying the official commissioning of the Calcasieu Pass export project until 2025. However, Venture Global had constructed a second LNG facility that began production in late 2024—prior to the initial plant’s official inauguration. The legal battles with prominent LNG traders, particularly Shell and BP, raised investor doubts about the company's reliability and potential hesitance from future LNG trading clients.
Nonetheless, positive outcomes in the Shell and Repsol cases alleviated these concerns, and ConocoPhillips' recent 20-year supply agreement with Venture Global is expected to bolster investor confidence.
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