He was asked during Galp’s third-quarter earnings call on Monday to provide any indication of when Galp expects a decision on the Venture Global arbitration, and to share any expectations, given that there have been different outcomes for different plaintiffs so far.
“On Venture Global, we are not expecting any outcome before next year. And that’s it,” da Silva said, without providing further details.
Galp and other offtakers from Venture Global’s Calcasieu plant in Cameron Parish, Louisiana, have been in dispute with the US LNG producer over LNG sales from the Calcasieu Pass plant since 2023.
Back in 2018, Venture Global and Galp entered into a 20-year sales and purchase agreement (SPA) for the supply of one million tonnes per annum (mtpa) from the Calcasieu Pass plant.
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 seeks more than $1 billion
UK-based energy giant BP recently won an arbitration case against Venture Global LNG over LNG sales from the Calcasieu Pass plant.
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, according to Venture Global.
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.
“Decision contradicts findings” in Shell arbitration
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.
