10th Oct 2025 08:52
(Alliance News) - Venture Global Inc on Thursday said an arbitration panel had sided with BP Gas Marketing Ltd, part of BP PLC, regarding liquified natural gas sales from the Calcasieu project.
The Virginia, US-based LNG producer said London-based oil major BP is seeking damages "in excess" of USD1.0 billion, plus legal costs.
Shares in BP were down 0.4% at 431.10 each in London on Friday morning. Venture Global Inc fell 13% to USD11.00 in after-hours trading in New York on Thursday.
Venture Global said on Wednesday, the International Chamber of Commerce international court of arbitration informed it that a partial final award had been issued in the proceedings with BP Gas Marketing Ltd.
The award found that Venture Global had breached its obligations to declare the commercial operation date of the Calcasieu project in a timely manner and act as a "Reasonable and Prudent Operator" pursuant to the sales and purchase agreement.
The Calcasieu project is a LNG export terminal in Cameron Parish, Louisiana, developed by Venture Global LNG.
Remedies will be determined in a separate damages hearing, expected in 2026, with a final award expected to follow the damages portion of the hearing.
Venture Global said it 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 PLC.
In August, Venture Global had won a similar case against London-based Shell.
"The company is currently evaluating all available options in response to the tribunal's ruling and will continue to vigorously defend our position," it added.
Venture Global said the award does not impact the terms of the SPA with BP, as reflected by 14 cargos delivered to BP to date from the Calcasieu project under the agreement.
The case was one of several pursued by Venture Global's customers alleging it failed to deliver shipments under long-term supply contracts and instead sold them for higher prices on the spot market when gas prices soared in early 2022 at the start of Russia's invasion of Ukraine.
BP told the Financial Times it was pleased with the outcome and appreciated the arbitration panel's "thorough review and fair judgment on this matter".
"We look forward to the next phase of the arbitration process, which will determine the damages to be paid to BP as a result of Venture Global's breach of contract," it said.
By Jeremy Cutler, Alliance News reporter
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