GLNG: Shell accuses Venture Global of wrongfully earning $3.5bn in contracted cargoes dispute

US LNG upstart Venture Global has been accused by Shell of “wrongfully earning” $3.5bn through failing to supply contracted shipments to foundation customers, The Financial Times reported on September 5.

It marks the latest twist in a long-running feud, which began in 2022 when Venture Global started shipping cargoes on the spot market while withholding contracted deliveries to several European long-term buyers.

Following Russia’s invasion of Ukraine in February 2022, LNG spot market prices soared. Citing that its flagship Calcasieu Pass LNG terminal in Louisiana was still in the commissioning phase, Venture Global is alleged by Shell to have sold more than 330 cargoes on the spot market, while foundation customers have still yet to receive their first delivery.

Ahead of an upcoming arbitration case, Shell commissioned consultancy Compass Lexecon “to assess how much more revenue Venture Global wrongfully earned by denying certain European customers their contracted cargoes”.