Venture Global Suffers Loss in Arbitration Case Against BP -- WSJ

Dow Jones
Oct 10

By Benoît Morenne

U.S. natural-gas exporter Venture Global suffered a surprising loss Thursday in an arbitration case against customer BP.

BP and other long-term buyers have accused Venture Global of withholding contracted cargoes of liquified natural gas after Russia's invasion of Ukraine sent natural-gas prices soaring, and of instead selling them on the spot market to enrich itself.

Venture Global said in a regulatory filing that the International Court of Arbitration had issued a partial final award to BP. The British giant is seeking damages in excess of $1 billion, as well as interest, costs and attorneys' fees, according to Venture Global.

Separately, Venture Global said it had reached a settlement with another long-term customer that it didn't name.

Venture Global's shares fell by more than 10% after market hours.

The loss comes roughly two months after Venture Global won a similar case against Shell, which it celebrated as a vindication of its unorthodox business model.

It said arbitrators found it had breached its obligations to declare the start of commercial operations at its Calcasieu Pass LNG project in Louisiana in a timely manner, and act as a "reasonable and prudent operator" pursuant to a supply agreement it signed with BP.

Venture Global said it was disappointed by the decision, which it believes contradicts the findings in the case against Shell. It is currently evaluating all available options in response to the ruling, it said.

Venture Global has said customers knew from the beginning there would be an extended period to get the plant fully operational. Selling cargoes to others during that period before fulfilling long-term contracts was a part of its business plan, the company said.

Several other customers have pursued arbitration against Venture Global, including Edison and Portugal's Galp. Venture Global has said the claims, which are expected to be fully decided in coming months, total between $6.7 billion and $7.4 billion.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

October 09, 2025 18:29 ET (22:29 GMT)

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