Finance
NY court refuses to overturn arbitration ruling that favored venture global over shell
Published by Global Banking & Finance Review®
Posted on March 3, 2026
3 min readLast updated: March 3, 2026
Quick Summary
A New York judge has upheld the arbitration award favoring Venture Global over Shell in their LNG dispute, denying Shell’s request to overturn or pursue further discovery, effectively concluding its legal challenge on this matter.
NY Court Rejects Shell’s Challenge in Venture Global LNG Arbitration Ruling
By Curtis Williams, Jonathan Stempel and Marwa Rashad
New York State Supreme Court Decision on Shell vs. Venture Global Arbitration
Background of the Arbitration Dispute
HOUSTON/NEW YORK/LONDON, March 2 (Reuters) - A New York state judge on Monday rejected British oil major Shell's request to throw out an arbitration award that favored Venture Global in a dispute over the American company's alleged improper sale of liquefied natural gas.
Judge’s Ruling and Its Implications
Justice Joel Cohen of the state Supreme Court determined no additional discovery was warranted because of the substantial deference the court must give to arbitral decisions. The ruling effectively brings an end to Shell's challenge of Venture Global's failure to provide it with LNG cargoes for years after the plant first produced the supercooled gas.
Reactions from the Parties Involved
"We welcome the New York State Supreme Court’s complete denial of Shell’s petitions to overturn the unanimous arbitral award issued in favor of Venture Global in August 2025," a Venture Global spokesperson said on Monday.
Shell did not immediately reply to a request for comment.
Wider Context: Arbitration Claims Against Venture Global
Several energy companies including Shell, Repsol and BP began filing arbitration claims in 2023 against Venture Global, which operates LNG export facilities in Louisiana. The LNG producer was accused of wrongfully profiteering by selling gas at higher prices on the spot market following Russia's invasion of Ukraine, instead of honoring its contracts.
Shell and Repsol lost their cases, while BP won its case in October. BP's damages have not yet been determined.
Details of the Shell Case
The Shell case centered on shipments from Venture Global's Calcasieu Pass facility in Louisiana. It accused Venture Global of delaying the expected October 2022 start date for the facility's commercial operations in an attempt to sell gas elsewhere at market prices.
Allegations and Counterarguments
In court papers, Shell said Venture Global concealed communications from the three arbitrators that explained its activities related to the facility. Venture Global countered that Shell's allegations of fraud and misconduct were a baseless and improper effort to undo a "full and fair" arbitration.
Current Status of Venture Global Facilities
The Calcasieu Pass facility began commercial operations in April 2025. Shell has a separate long-term contract with Venture Global's Plaquemines facility, also in Louisiana.
(Reporting by Curtis Williams in Houston; Editing by Nathan Crooks and Chris Reese)
Key Takeaways
- •Justice Joel Cohen of the New York Supreme Court refused Shell’s motion to vacate the arbitration award in favor of Venture Global, citing the strong judicial deference to arbitral decisions.
- •This ruling brings closure to Shell’s case relating to alleged failure by Venture Global to deliver LNG cargoes from its Calcasieu Pass facility during the commissioning phase.
- •Venture Global has seen a mixed arbitration record: following its win over Shell, it also recently prevailed in a case with Repsol, while losing to BP—highlighting ongoing legal and financial uncertainties for the company.
Frequently Asked Questions about NY court refuses to overturn arbitration ruling that favored Venture Global over Shell
1What was the dispute between Venture Global and Shell about?
The dispute centered on Venture Global's alleged improper sale of LNG cargoes and failure to deliver them to Shell, leading to arbitration.
2How did the New York court rule regarding the Shell and Venture Global arbitration?
The New York state Supreme Court rejected Shell's request to overturn the arbitration ruling, favoring Venture Global.
3Which facility was at the center of the Shell-Venture Global case?
The Calcasieu Pass facility in Louisiana was at the center of the case.
4Have other companies filed claims against Venture Global?
Yes, other companies like Repsol and BP filed claims; Shell and Repsol lost, while BP won its case.
5What did Shell allege in court regarding the arbitration process?
Shell alleged that Venture Global concealed crucial communications from the arbitration panel.
