Overview
- Shell confirmed it filed a challenge on Monday in the New York Supreme Court to overturn an August arbitration award in favor of Venture Global.
- The dispute focuses on LNG supply from the Calcasieu Pass facility and whether long-term delivery obligations began before official commissioning, as buyers allege cargoes were sold on the spot market starting in 2023.
- Arbitration outcomes have been mixed, with Shell losing its case in August and BP winning a favorable partial award in October, while Edison and Galp also filed claims.
- Venture Global says Shell received a full and fair process that produced a unanimous decision, and it maintains its contracts were honored until commissioning.
- Venture Global tightened its consolidated adjusted EBITDA guidance, citing lower expected fixed liquefaction fees and accounting reserves related to ongoing arbitrations.