Venture Global disclosed Thursday that a three-member International Chamber of Commerce arbitration panel found its Calcasieu Pass unit breached its long-term supply agreement with Portugal’s Galp by not declaring the facility’s commercial operation date in a timely manner. One of the three arbitrators dissented from the majority’s finding. A separate damages hearing, expected in 2027 or 2028, will set remedies, and the final award is subject to a $170 million aggregate seller liability cap under the contract.
The ruling is the company’s second arbitration loss to a long-term buyer after BP prevailed, while Venture Global won cases against Shell and Repsol and settled with Italy’s Edison earlier this year for additional cargoes. Poland’s Orlen is the only remaining arbitration, with a decision expected by the end of the year. Buyers alleged Venture Global delayed the commercial-operations declaration at Calcasieu Pass to sell cargoes on the spot market at elevated prices after Russia’s invasion of Ukraine; the company said equipment issues caused the delay and it was under no obligation to honor term contracts until commissioning, which it says happened in April 2025.
The trust question is the commercial core. Shell and BP were among the largest LNG traders disputing the delays, and investor concern has centered on whether counterparties will hesitate to sign new term deals. Favorable rulings against Shell and Repsol eased that pressure, and ConocoPhillips signed a 20-year supply deal earlier this month. Galp said it is reviewing the tribunal’s decision and assessing its next steps.
The broader context is a market still litigating the 2022-23 spot-price spike. Venture Global has said it delivered 20 cargoes to Galp since commercial operations began, and it plans to evaluate all options against the ruling. With damages capped at $170 million in the Galp case but potentially running into the billions across the docket, the Orlen ruling due by year-end is the next marker for whether the precedent set widens.