Venture Global filed an official response in the New York Supreme Court to Shell’s fraud allegations following the oil major’s defeat in arbitration over liquefied natural gas (LNG) cargoes. The U.S. LNG producer disputes any wrongdoing and accuses Shell of violating the confidentiality terms of the arbitration process.
A commercial dispute over the Calcasieu Pass terminal
The legal conflict stems from Venture Global’s failure to honour long-term contracts with multiple international buyers, opting instead to sell LNG cargoes on the spot market at higher prices, particularly after the outbreak of the armed conflict in Ukraine. Shell, BP and Edison initiated arbitration proceedings in 2023. Shell lost its case in August, while BP prevailed in October.
In its November filing challenging the award, Shell claimed that a third party testified to Venture Global’s abrupt decision to delay the commissioning of its Calcasieu Pass liquefaction facility. The oil major argued that this communication had been intentionally concealed through what it called misleading statements.
Mutual accusations and contractual stakes
In its reply, Venture Global stated that Shell had presented “no evidence of any fraud” and clarified that the third party in question did not confirm any written exchanges with the company. Venture Global added that its legal counsel had not made any false statements during the proceedings.
The company also accused Shell of having shared confidential arbitration information with other commercial counterparties and their legal representatives, in breach of the rules. Venture Global included in its filing an email from a redacted Shell executive expressing interest in a commercial resolution regarding the Calcasieu Pass and Plaquemines sites.
Market tensions amid LNG oversupply fears
The email, dated the same day Shell filed its challenge, indicated a willingness to enter discussions. The executive also referenced BP’s arbitration outcome, stating that the evidence raised substantial concerns and suggesting that Shell’s case should have been decided in a similar manner.
Since Shell’s legal challenge, Venture Global’s share price has dropped by 22%, trading near a historic low of $6.56 compared with $24 at the time of its market debut in January. The company also faces market pressure due to concerns over a potential LNG supply glut.
