BP scores victory in arbitration showdown with Venture Global, seeks over $1B in damages

October 10, 2025, by Melisa Cavcic

Venture Global, an American producer of liquefied natural gas (LNG) sourced from North American basins, has lost its arbitration battle against the UK-headquartered energy giant BP over the delay in starting full commercial operations at its LNG facility in Louisiana, United States.

Calcasieu Pass terminal; Source: Venture Global

While reporting on the arbitration ruling in an LNG dispute, Venture Global explained that the International Chamber of Commerce (ICC) International Court of Arbitration notified its indirect subsidiary, Venture Global Calcasieu Pass (VGCP), on October 8, 2025, about a partial final award issued in arbitration proceedings with BP Gas Marketing regarding LNG sales from the Calcasieu Pass project under the duo’s long-term LNG sales and purchase agreement (SPA).

According to the award issued by the arbitration tribunal, VGCP had breached its obligations to declare COD of the Calcasieu project in a timely manner and act as a “reasonable and prudent operator” pursuant to the SPA, along with certain other obligations.

While remedies will be determined in a separate damages hearing, which has not been scheduled but is anticipated to occur in 2026, BP is seeking damages in excess of $1 billion, among other remedies, as well as interest, costs, and attorneys’ fees.

Venture Global highlighted: “The company is disappointed by the arbitration tribunal’s decision in the proceeding with BP, which it believes contradicts the decisive findings in the prior arbitration involving Shell and the facts verified by independent third parties and regulatory agencies with oversight of the Calcasieu project.

“The company is currently evaluating all available options in response to the tribunal’s ruling and will continue to vigorously defend our position. Importantly, the award does not impact the terms of the SPA as entered into and presently performed by the parties, as evidenced by 14 cargos delivered to BP to date from the Calcasieu Project pursuant to the SPA.”

As the final award is expected to follow the damages portion of the hearing, the LNG player does not anticipate that the final award will be subject to the seller’s aggregate liability cap in the SPA, based on the terms of the award issued by the arbitration tribunal.

This follows the win the U.S. firm secured in the arbitration process with Shell over the delay in beginning full commercial operations at the same project.

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In the aftermath of the positive decision in the arbitration with Shell, Venture Global Calcasieu Pass claims to have reached another resolution with a post-COD SPA customer related to the arbitration proceeding concerning the Calcasieu Pass facility.

“The settlement has no material impact on the company. This arbitration is now resolved in its entirety. The company remains committed to its long-term contractual relationships and looks forward to continuing to supply this customer with low-cost U.S. liquefied natural gas,” emphasized the U.S. player.

Venture Global revealed the start of commercial operations at its Calcasieu Pass facility in Louisiana on April 15, 2025, representing a wait of nearly three years after shipping its first LNG cargo.