Shell has filed an appeal in the New York Supreme Court challenging its defeat in an arbitration case against U.S. liquefied natural gas producer Venture Global. This move comes weeks after BP successfully secured over $1 billion in a similar arbitration decision. The disputes center on Venture Global’s failure to deliver liquefied natural gas (LNG) under long-term contracts while selling cargoes on the spot market amid soaring prices following the Ukraine war.
Shell contends that its appeal is warranted due to Venture Global withholding critical evidence during the arbitration process. The filing, confirmed by a Shell spokesperson and dated Monday, follows claims made by Shell and other companies—including BP, Edison, and Galp—against Venture Global starting in 2023, alleging the company profited from spot market sales while neglecting its contractual obligations from the Calcasieu Pass export facility in Louisiana.
Shell’s arbitration loss occurred in August, whereas BP’s victory happened in October, highlighting the differing outcomes. In its legal argument, Shell pointed out that Venture Global earned over $20 billion from more than 400 LNG cargoes sold on the spot market before starting deliveries to longer-term contract holders in April.
Venture Global has maintained that its Calcasieu Pass facility was still in start-up mode during much of this time, asserting that it was not required to fulfill long-term contracts until it received necessary regulatory approvals. Shell declined to provide further comments, citing confidentiality obligations regarding the arbitration proceedings.