On October 8, the International Chamber of Commerce (ICC) International Court of Arbitration informed Venture Global that a partial final award had been issued in the previously disclosed arbitration proceedings with BP Gas Marketing regarding LNG sales from the Calcasieu project under the long-term LNG sales and purchase agreement between the two firms.
Among other remedies, BP is seeking damages in excess of $1 billion, as well as interest, costs and attorneys’ fees, Venture Global said in a SEC filing on Thursday.
Venture Global said that the award issued by the arbitration tribunal found that VGCP had breached its obligations to declare COD of the Calcasieu project in a timely manner and act as a “reasonable and prudent operator” pursuant to the SPA, along with certain other obligations.
Moreover, remedies will be determined in a separate damages hearing, which has not been scheduled but is anticipated to occur in 2026, according to the LNG exporter.
Final award to follow
A final award is expected to follow the damages portion of the hearing, Venture Global said.
Based on the terms of the award issued by the arbitration tribunal, Venture Global does not anticipate that the final award will be subject to the seller aggregate liability cap in the SPA.
“The company is disappointed by the arbitration tribunal’s decision in the proceeding with BP, which it believes contradicts the decisive findings in the prior arbitration involving Shell and the facts verified by independent third parties and regulatory agencies with oversight of the Calcasieu project,” Venture Global said.
In August, Venture Global announced that it had won an arbitration case against UK-based LNG giant Shell over LNG sales from the Calcasieu Pass plant.
“Venture Global is currently evaluating all available options in response to the tribunal’s ruling and will continue to vigorously defend our position,” the company said.
“Importantly, the award does not impact the terms of the SPA as entered into and presently performed by the parties, as evidenced by 14 cargoes delivered to BP to date from the Calcasieu project pursuant to the SPA,” Venture Global said.
Another resolution
In addition, Venture Global Calcasieu Pass (VGCP), an indirect subsidiary of Venture Global, Inc. has reached another resolution with a post-COD SPA customer related to an arbitration proceeding concerning the Calcasieu Pass facility.
Venture Global said the settlement has no material impact on the company.
This arbitration is now resolved in its entirety, the company said, without providing further details.
Calcasieu Pass
Calcasieu Pass produced its first LNG on January 19, 2022, moving from FID to LNG production in 29 months, while the first commissioning cargo left the facility on March 1, 2022.
In April, Venture Global launched commercial operations at its Calcasieu Pass LNG terminal, some 68 months from its final investment decision and 38 months after production start.
BP’s CEO Murray Auchincloss said in February that BP expects a ruling on the arbitration dispute Venture Global to be delivered in the second half of this year.
BP has a 20-year LNG contract for volumes for the Calcasieu Pass LNG terminal in Louisiana, the same as Shell.
The company and other Calcasieu Pass customers have been in a dispute with Venture Global over the launch of commercial operations at the facility since 2023.
Announcing the Shell decision in August, Venture Global said that the remedies sought by these customers include damages ranging between $6.7 billion and $7.4 billion, rather than the termination of the post-COD SPA.
