Venture Global LNG faces claims of about $5.4 billion in a customer dispute over its Calcasieu Pass facility, which is headed for arbitration before the end of the year, according to an analytical firm.

Jefferies Group assessed the potential damages to four firms involved in arbitration over disputed sales of about 6 million tonnes per annum (mtpa).

The arbitration hearings over the dispute are expected to start before the end of the year, according to comments Shell’s CEO made to investors at the end of October. Shell (SHEL) is seeking arbitration along with others including BP, Galp (GLPEF) and Repsol (REPYY).

Shell CEO Wael Sawan told investors that the company has made little progress in its dispute with Venture Global.

“On Venture Global, I've talked about it enough times. I wish I had something new to say on it,” Sawan said. “Frustratingly, we have got no volumes against our term agreement—a term agreement, of course, which underpinned the financing for that project. We’re going to go through the arbitration hearings this quarter.”

The dispute centers on the definition of “commissioned.” The companies seeking arbitration were part of the original guarantors of Calcasieu Pass.  According to Jefferies, Shell and BP each signed offtake contracts for 2 mtpa, while Galp and Repsol signed for 1 mtpa.

The Calcasieu Pass facility has been selling LNG on the world market since 2022. However, Venture Global says the project remains in the commissioning phase and requires “substantial testing and a phased commissioning process” before it can meet its obligations to its pool of customers. The company says the LNG facility requires further testing compared to other LNG facilities because of the unit’s unique design, but that the facility will be fully operational by the end of 2024.

In September, the U.S. Federal Energy Regulatory Commission ruled Venture Global was taking adequate steps to build the facility.

Arbitration Looms for Venture Global with Billions at Stake
(Source: Rextag)

According to Jefferies, BP and Shell could potentially claim $1.8 billion each, while Galp and Repsol could each claim $900 million. The firm calculated the potential damages using TTF futures price at which the companies would have been able to sell the LNG cargoes; sourcing costs based on Henry Hub prices; plus $2.5/MMBtu, less transport costs.

Bloomberg, quoting an anonymous source, reported Nov. 20 that total damages could reach $5.9 billion if all companies filing for arbitration are successful. The International Chamber of Commerce and the London Court of International Arbitration will hear the cases, according to Bloomberg.

Venture Global did not immediately respond to a request for comment from Hart Energy on Dec. 4.

Busy winter for Venture Global

Besides the arbitration dispute, Venture Global is closing out 2025 with a lot on its plate, according to several reports.

The company is reportedly preparing an IPO, Bloomberg reported in November. The move could raise as much as $3 billion, according to the report, which stated that the company’s enterprise value could be more than $100 billion.

As of Dec. 4, the SEC had not recorded a filing from the company.

Venture Global is also close to selling cargoes from its Plaquemines LNG terminal, which is near completion. The FERC gave the site permission to introduce feedgas into the Plaquemines liquefication units on Nov. 21, an indication that the start of production is near. The company’s LNG tanker Venture Bayou has been docked at the site since Nov. 18.

S&P Global reported Nov. 28 that Venture Global has sold the initial LNG cargoes from the Plaquemines terminal at a rate of four to five cargoes a month. S&P attributed the information to anonymous sources.  

Comments