U.S. liquefied natural gas producer Venture Global has accused Shell of deliberately trying to destabilise its operations, according to an internal message sent to employees by the company’s co-founders. The dispute is part of a broader conflict over the fulfilment of long-term liquefied natural gas (LNG) delivery contracts.
In a message to staff, Michael Sabel and Robert Pender, co-founders of Venture Global, stated that Shell had launched “a three-year campaign to damage Venture Global”, describing the accusations made by Shell as “completely baseless”. The statement comes as both companies are engaged in legal proceedings related to the Calcasieu Pass LNG export project.
Unfavourable arbitration ruling for Shell
Shell accuses Venture Global of selling LNG cargoes on the spot market that were originally intended to be delivered under long-term agreements. According to Shell, Venture Global intentionally delayed the commissioning phase of the Calcasieu Pass plant to benefit from higher spot prices. This allowed the U.S. company to generate additional revenue without fulfilling its contractual obligations.
However, an arbitration tribunal ruled in Venture Global’s favour in August, determining that the company had not breached its contractual commitments. The company argued that its long-term obligations only became effective once the plant was officially commissioned, which occurred earlier this year.
Second plant started production before the first
In the meantime, Venture Global completed construction of a second LNG liquefaction facility, which delivered its first cargo in late 2024—prior to the official commissioning of Calcasieu Pass. The difference in project timelines has intensified tensions with its contract partners.
Shell has since appealed the arbitration decision, bringing the case before the New York State Supreme Court. The oil major alleges that Venture Global withheld critical information from both Shell and the arbitration panel during the original proceedings.
Deteriorating commercial relationship
The dispute between Shell and Venture Global unfolds in a context of high global demand for LNG, with continued price volatility. Several other major companies, in addition to Shell, had previously voiced similar concerns about Venture Global’s contract performance.
“This behaviour should be very concerning to Shell’s employees, board of directors and shareholders,” wrote Venture Global’s executives in the internal communication. Upcoming legal proceedings may influence the structure of future contractual relationships within the LNG sector.
