Venture Global breached LNG supply deal with Galp, tribunal rules

Shell

08/10/2026 12:46

Oct 8 (Reuters) - Venture Global VG.N said on Thursday an arbitration tribunal found its Calcasieu Pass unit breached a long-term supply agreement with Portugal's Galp GALP.LS by failing to declare commercial operations at the LNG project on time.
The ruling is the latest in a series of disputes between Venture Global and its long-term buyers, who allege the delay allowed the company to divert cargoes to the spot market during a period of high LNG prices rather than meeting its contracted supply commitments.

Here are more details:
Other LNG buyers in similar disputes with Venture Global include Shell SHEL.L, BP BP.L, Repsol REP.MC, Italy's Edison EDNn.MI and Poland's Orlen PKN.WA.
The tribunal found that Venture Global Calcasieu Pass breached its obligation to declare commercial operations in a timely manner under the long-term sales and purchase agreement with Galp Trading.
The company said in a regulatory filing it is evaluating its options while continuing to defend its position, noting that one of the three arbitrators disagreed with the majority's finding.
Remedies will be determined in a separate damages hearing expected in 2027 or 2028, with any final award subject to a $170 million aggregate seller liability cap under the agreement, the company said.
Venture Global added it has delivered 20 cargoes to Galp since Calcasieu Pass reached commercial operations on April 15, 2025.
The ruling does not affect the terms of the agreement currently being performed by the parties, the company said.


 (Reporting by Varun Sahay in Bengaluru; Editing by Vijay Kishore)
 ((Varun.Sahay@thomsonreuters.com;))