Venture Global Wins Arbitration Against Shell

Shell has lost an arbitration claim against Venture Global, a US-based liquefied natural gas (LNG) exporter. The arbitration related to a dispute over a 2018 sale and purchase agreement for LNG. The terms of the arbitration are not disclosed. Venture Global is known for its proposed Plaquemines LNG terminal in Louisiana.

Shell has lost an arbitration claim against Venture Global, a U.S.-based liquefied natural gas (LNG) exporter. The dispute, which involved a 2018 sale and purchase agreement for LNG, has been resolved in favor of Venture Global. The terms of the arbitration are not disclosed, but the ruling underscores the ongoing tensions between major energy players and LNG producers.

Venture Global is known for its proposed Plaquemines LNG terminal in Louisiana, which has been a subject of controversy. The company has been accused by several global energy majors, including Shell, BP, and Edison, of profiting from the sale of LNG on the spot market instead of fulfilling long-term contracts. Venture Global has denied these allegations, attributing the delays to technical issues with the electric system at its facilities.

The arbitration ruling comes as Venture Global continues to expand its operations. The company reported strong financial performance in its second-quarter earnings, with revenues and LNG sales volumes exceeding expectations. The company's shares rose nearly 8% following the earnings report, reflecting investor confidence in its ability to navigate the challenging LNG market.

Shell, in a statement, expressed disappointment with the outcome but respected the tribunal's decision. The company emphasized the importance of long-term contracts in the LNG industry, which are essential for sustained investment and growth. The ruling reaffirms Venture Global's commitment to honoring its agreements with customers.

The arbitration ruling is significant for the LNG industry, as it sets a precedent for future disputes. As the industry continues to evolve, the ability of LNG producers to balance long-term contracts with the opportunity to sell on the spot market will be a critical factor in their success.

References:

[1] https://www.reuters.com/business/energy/venture-global-wins-arbitration-case-against-shell-over-contracted-lng-cargoes-2025-08-12/
[2] https://www.reuters.com/business/energy/venture-global-beats-second-quarter-revenue-estimates-higher-lng-sales-2025-08-12/