An International Chamber of Commerce tribunal has ruled in favor of U.S. LNG supplier Venture Global, dismissing claims by energy giant Shell that the company broke supply contracts to profit from higher spot market prices.
In a closely watched legal battle with significant implications for the global liquefied natural gas (LNG) market, U.S. supplier Venture Global has emerged victorious in its arbitration case against Shell. A tribunal from the International Chamber of Commerce (ICC) sided with Venture Global, rejecting Shell's claims that the company violated long-term supply contracts by selling cargoes on the lucrative spot market.
The dispute centered on Venture Global's Calcasieu Pass facility in Louisiana, which began producing LNG in early 2022. Shell and several other customers, including BP and Sinopec, alleged that Venture Global delayed the formal commencement of commercial operations—a key contractual benchmark—and instead sold hundreds of "commissioning cargoes" at significantly higher spot prices following Russia's invasion of Ukraine. This alleged "profiteering" led to claims for damages totaling between $6.7 billion and $7.4 billion across all cases. Venture Global, however, maintained that its contracts permitted the sale of these cargoes before the plant reached full commercial operation, a milestone it finally announced in April 2025.
Venture Global attributed the delay in commercial operations to a faulty electrical system at the facility, which it argued prevented the plant from operating optimally. The company said its practice of incrementally exporting cargoes during the construction phase was a key part of its business model that brought LNG to the market faster than ever before.
In a statement following the decision, Venture Global said it was "pleased with the tribunal's determination which reaffirms what Venture Global has maintained from the outset—the plain language in our contracts, mutually agreed upon with all of our customers, is clear."
The ruling is seen as a major victory for Venture Global, a company that has rapidly grown to become the second-largest U.S. LNG producer. Analysts believe the decision could influence the outcome of other ongoing arbitration cases filed by companies like BP, Repsol, and Edison, as it validates Venture Global's interpretation of its contractual obligations.
The resolution of this case removes a layer of financial uncertainty for Venture Global, which had noted in its second-quarter earnings report that it faced a potential penalty of up to $1.6 billion from the collective claims.
