Venture Global, Inc. (VG) shares plummeted 5.06% in Tuesday's pre-market trading session following news that Shell has challenged its earlier arbitration victory in the New York Supreme Court. The development marks a significant setback for the liquefied natural gas (LNG) producer, which has been embroiled in a series of disputes with major energy companies over LNG delivery contracts.

Shell's legal challenge alleges that Venture Global withheld crucial evidence during the arbitration process. The oil giant claims that Venture Global earned over $20 billion from selling more than 400 LNG cargoes on the spot market between 2022 and 2025, before declaring commercial operations and initiating deliveries to long-term contract holders in April of this year. This move by Shell comes on the heels of BP's recent $1 billion-plus arbitration win against Venture Global in a similar case.

The ongoing legal battles stem from Venture Global's failure to deliver LNG under long-term contracts while allegedly profiting from spot market sales during the price surge following the outbreak of the Ukraine war. The company has argued that its Calcasieu Pass LNG plant in Louisiana was in start-up mode and not obligated to fulfill long-term contracts until it became fully operational in April 2025. However, this stance has been challenged by several energy firms, with combined claims amounting to $5.5 billion as of January last year. Adding to the company's woes, Deutsche Bank has cut its price target on Venture Global to $14 from $17, further pressuring the stock.