Published by Global Banking & Finance Review®
Posted on March 3, 2026
2 min readLast updated: April 2, 2026
Add as preferred source on GoogleA 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.
By Curtis Williams, Jonathan Stempel and Marwa Rashad
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.
Justice Joel Cohen of the state Supreme Court said no additional evidence-gathering was warranted, and the court owed "substantial deference" to arbitral decisions.
"Shell’s suggestion that (Venture Global's) counsel made misrepresentations to the tribunal is pure speculation," Cohen wrote. "Absent clear and convincing evidence of fraud or misconduct, and none has been presented, Shell’s motion falls at the first hurdle."
The decision effectively ends Shell's challenge of Venture Global's failure to provide it with LNG cargoes for years after the plant first produced the supercooled gas.
"We recognize that courts are reluctant to challenge arbitral awards but we did believe in the strength of our case," Shell said in a statement. "We are disappointed in the outcome.”
A spokesperson for Venture Global said it welcomed the court's "complete denial" of Shell’s effort to overturn the August 2025 arbitral award.
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.
The Shell case centered on shipments from Venture Global's Calcasieu Pass facility in Louisiana. Shell 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.
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, Chris Reese and Raju Gopalakrishnan)
The dispute centered on Venture Global's alleged improper sale of LNG cargoes and failure to deliver them to Shell, leading to arbitration.
The New York state Supreme Court rejected Shell's request to overturn the arbitration ruling, favoring Venture Global.
The Calcasieu Pass facility in Louisiana was at the center of the case.
Yes, other companies like Repsol and BP filed claims; Shell and Repsol lost, while BP won its case.
Shell alleged that Venture Global concealed crucial communications from the arbitration panel.
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