BP has won an arbitration case against Venture Global LNG concerning the U.S. supplier’s failure to deliver liquefied natural gas (LNG) under a long-term supply contract expected to begin in late 2022.
The International Chamber of Commerce’s International Court of Arbitration ruled that Venture Global breached its obligations by failing to declare the start of commercial operations at its Calcasieu Pass facility in a timely manner and by not acting as a “reasonable and prudent operator.”
The ruling marks a notable contrast to an earlier arbitration decision in August, when Venture Global prevailed in a similar dispute with Shell. The divergence between the two outcomes remains unexplained.
BP is seeking more than US$1 billion in damages, including interest, legal fees, and associated costs. Venture Global expressed disappointment with the tribunal’s ruling, stating that it contradicts the prior award in its case against Shell.
Following the announcement, Venture Global’s stock fell more than 10 % in after-hours trading, cutting its market capitalization by roughly US$3.3 billion.
A separate hearing is scheduled for 2026 to determine the final amount of compensation owed to BP. The damages could exceed limits originally built into the sales contract, depending on the tribunal’s decision. BP said it welcomed the outcome and looks forward to the next phase of proceedings, while Venture Global indicated it will continue to defend its position.
Venture Global also disclosed that it has reached a confidential settlement with another customer who filed arbitration over LNG cargo deliveries, noting that the agreement would not materially affect its operations.
Other major energy buyers, including Edison and Galp, have initiated similar arbitration actions. They claim Venture Global diverted contracted LNG shipments to the spot market during the 2022–2023 energy crisis, instead of fulfilling long-term obligations under lower fixed-price contracts.
Venture Global attributes its delays to technical difficulties at the Calcasieu Pass terminal, specifically a malfunctioning power-generation component. The facility officially commenced full commercial operations in April 2025, after which the company’s revenue reportedly fell by about 70 % as it shifted from spot trading to long-term contract deliveries.
