Arbitration victory granted to Venture Global against Shell

Venture Global Makes Strides in LNG Industry

Venture Global, an Arlington-based company, is making waves in the liquefied natural gas (LNG) industry, emphasizing the importance of respect for negotiated contracts and adherence to regulatory and legal bodies. The company has consistently honored these agreements without exception, as demonstrated by its recent achievements.

Last week, Calcasieu Pass, a Venture Global project, received US Department of Energy uprate approval, increasing its permitted peak liquefaction capacity from 12 million tonnes per annum (mtpa) to 12.4 mtpa. This expansion is a testament to the company's commitment to growth and its ability to navigate the complex regulatory landscape.

In July, Venture Global executed a 20-year sales and purchase agreement (SPA) with Petronas, marking a significant milestone. The company has also agreed on the sale of 2 million tons per year of LNG to Petronas, SEFE, and Eni in recent weeks, further solidifying its position in the global market.

However, Venture Global has faced allegations of profiteering, with claims that it sold commissioning cargoes at higher spot market prices instead of at long-term contracted prices. The company, however, maintains that the plain language in their contracts, mutually agreed upon with all customers, is clear. They claim their incremental export of commissioning cargoes during facility construction has brought LNG to the market years faster than ever before, strengthening global energy security.

Venture Global has also been embroiled in a legal battle with Shell over the failure to deliver liquefied natural gas under long-term contracts from the Calcasieu Pass plant, Louisiana, starting in 2023. The company denied the claim, stating they delayed moving to commercial operations due to a faulty electric system. The legal battle ended in Venture Global's favour, with Shell expressing disappointment but respecting the Tribunal's outcome.

Financially, Venture Global is performing well. The company generated second quarter revenues of approximately $3.1bn and net income of $0.4bn. The company also recently closed a $4bn offering of senior secured notes for Plaquemines LNG.

The principles of contract sanctity and objective regulation are crucial for enabling innovation and breakthroughs that benefit all market participants and the customers served. These principles will ensure the industry remains dynamic, fair, and competitive, paving the way for continued growth and success for companies like Venture Global.