Venture Global emerges as winner in LNG arbitration case with Shell

August 13, 2025, by Melisa Cavcic

Venture Global, an American producer of liquefied natural gas (LNG) sourced from North American basins, has secured a win in the arbitration process with the UK-headquartered Shell over the U.S. player’s delay in kicking off full commercial operations.

Calcasieu Pass LNG facility; Source: Venture Global LNG

The global LNG market faces its own set of challenges, primarily related to project delays, operational inefficiencies, and contract enforcement that tend to affect not only developers but also the supply chain and LNG buyers.

The dispute between Venture Global and Shell arose because of the lengthy delay that the UK giant, as one of the U.S. firm’s customers, has experienced over the wait time for the start-up of commercial operations even though the company has been selling LNG on the spot market for years, prompting arbitration proceedings not just with the British player but also with BP, Repsol, Edison, and Orlen.

Venture Global announced the beginning 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. While Shell went on to express skepticism regarding the U.S. player’s commitment to fulfilling its contractual obligations, the latter was adamant about its readiness to fulfill obligations of supplying low-cost LNG to its customers over the agreed 20-year period.

America’s Calcasieu Pass LNG gets into the swing of commercial ops

Exploration & Production

Shell launched arbitration proceedings last year over unfulfilled gas deliveries stipulated in the long-term LNG supply deal with Venture Global’s Calcasieu Pass facility, which led to a loss of billions of dollars. In response to these accusations from Shell and other companies, the operator of the LNG project in Louisiana explained the shortfall in LNG supply by pointing out that the terminal was not fully commissioned.

Following the positive tribunal decision on the arbitration proceeding with Shell, Venture Global highlighted: “We are pleased with the tribunal’s determination which reaffirms what Venture Global has maintained from the outset–the plain language in our contracts, mutually agreed upon with all of our customers, is clear. We have consistently honored these agreements without exception.

“Our industry and the investors and lenders who underpin it, all rely on respect for both the sanctity of negotiated contracts and the experienced, objective regulatory and legal bodies that govern it. These principles will ensure our industry remains dynamic, fair and competitive, enabling the innovation and breakthroughs that benefit all market participants and the customers we serve.”

Ahead of the arbitration hearing last year, Shell laid certain allegations at the American firm’s door based on a study commissioned by Compass Lexicon consultancy to pinpoint the LNG operator’s additional revenue allegedly gained by withholding contracted shipments from some European customers.

With the study fresh in its mind, Shell claimed that Venture Global had wrongfully earned $3.5 billion following delivery of LNG cargos to higher-priced spot markets in the wake of a commodities price spike stemming from the Ukraine crisis that commenced in February 2022.

“Venture Global’s unique ability to incrementally export commissioning cargoes during the construction of our facilities has brought LNG to the market years faster than ever before and strengthened global energy security. The world needs more abundant, low-cost energy and our company looks forward to playing a leading role in meeting that demand for years to come,” emphasized the U.S. player.