Venture Global has won a significant arbitration case against Spain’s Repsol. Repsol had alleged that the U.S. liquefied natural gas (LNG) exporter breached supply contracts to take advantage of rising prices after Russia’s invasion of Ukraine.
This ruling is part of a series of cases brought by Venture Global’s clients, who claimed that the company failed to deliver shipments outlined in long-term contracts. Instead, they argued that Venture Global sold these shipments at higher spot market prices when gas prices surged in early 2022.
A representative from Venture Global stated, “Several rulings have confirmed what we’ve said from the beginning: We have fully complied with our long-term contracts.” The company expressed confidence that remaining disputes would reach similar conclusions.
Following the arbitration announcement, Venture Global’s stock jumped by up to 14% in after-hours trading. Repsol has not yet commented on this development.
In addition to this case, Venture Global secured a favorable ruling against Shell, although it lost a similar dispute against BP, which is pursuing over $1 billion in damages. The company has also settled a case against Unipec, and it awaits further rulings regarding disputes with customers in Asia and Europe.
Shell has contested Venture Global’s arbitration win, claiming the company withheld information relevant to the case. Venture Global has denied these allegations, asserting that Shell has sought to undermine its business.
Founded by former banker Michael Sabel and lawyer Robert Pender, Venture Global has made waves in the LNG sector by rapidly expanding and innovating in construction and financing. However, the company continues to face challenges, including a weak IPO last year and ongoing legal disputes.
Venture Global maintains that it was not obligated to fulfill its long-term shipment commitments as its LNG facility in Louisiana, known as Calcasieu Pass, had not commenced commercial operations when it sold cargoes on the spot market. The company also declared force majeure on its contractual obligations, citing the need for repairs to its power supply equipment, despite having shipped its first cargo in March 2022.