Venture Global LNG, operator of the Calcasieu Pass terminal on Louisiana’s coast, scored a major legal victory this week when a New York arbitration panel sided with the company in a $1.7 billion dispute with Shell, The Wall Street Journal writes.
The ruling ends a two-year battle over allegations that Venture Global withheld liquefied natural gas cargoes to sell on the spot market during the post-Ukraine invasion price surge. Shell and other buyers—including BP and Portugal’s Galp—still have pending claims totaling up to $7.4 billion.
The win bolsters Venture Global’s unconventional business model, which sped construction by using modular components and initially offered cut-rate liquefaction fees. The approach helped founders Michael Sabel and Robert Pender grow the once-unknown firm into a major Gulf Coast exporter with additional projects in Plaquemines Parish and the newly approved CP2 terminal.
While the stock has fallen sharply since January’s initial public offering, the decision could strengthen the company’s hand as it eyes more capacity and seeks to challenge Qatar’s dominance in global LNG exports.
